Is A Consolidation Loan Right? Tips From 4 Pillars Debt Consultants

Unfortunately, a lot of people take financial information from friends, family, and even from “experts” on the internet. It is not uncommon for our 4 Pillars team of debt consultants to hear from people in and around the Victoria area that they were told a consolidation loan was the right option to manage their debt.

Consolidation loans are a good option for many people. However, they are not the answer to all debt problems. As with any option for debt repayment and financial rehabilitation, the decision should be made with the required information specific to your situation.

Do You Qualify?
The first tip from our team of 4 Pillars debt consultants is to understand if you qualify for a consolidation loan. Banks and credit unions may require collateral for these types of loans, which means the individual must have the assets on hand to offset the loan amount.

In addition, the bank or credit union will review your credit score. If the debt accumulated over time and there are multiple missed payments, late payments, or partial payments on your credit report, your score may be below what the financial institution requires.

Ability to Stay Current
Another factor the 4 Pillars debt consultant considers is the ability for the individual to stay current with the consolidation loan payment. While the interest is lower and the loan can typically extend up to five years, failing to make payments creates a challenge and limits future debt repayment possibilities.

The best place to start in determining the financial rehabilitation plan that is best for you is a meeting with 4 Pillars Debt Consultants. To schedule an appointment, call us at 866-690-3328.