Strategies For Consolidation Loans From A Victoria 4 Pillars Debt Consultant

A debt consolidation loan is a possible option for individuals in Victoria to pay off debt. These loans are typically only used to pay off unsecured debt with high interest rates. Mortgages and other types of secured loans are not typically paid off using a consolidation loan as the interest is already low.

Is a Debt Consolidation Loan Always Right?

Most people assume their 4 Pillars debt consultant will recommend a debt consolidation loan. While many people in the Victoria area are a good fit for this option, it is not right for everyone.

A consolidation loan is offered through a bank, credit union, or another type of financial institute. This means the borrower for the consolidation loan must meet the criteria for obtaining a loan. People with a low credit score due to missed or partial payments or high debt to income ratio are unlikely to be approved for these loans.

Another factor our 4 Pillars debt consultant will take into consideration before making this recommendation is the interest rate on the current loans. It may be possible to restructure payments and address high interest rate debt to stay current and avoid the need for the loan.

Size of the Loan

The size of the debt consolidation loan must be enough to pay off most or all of the unsecured debt. The 4 Pillars debt consultant works closely with the individual or the couple to ensure all eligible debt is included when determining the size of the loan required.

To learn more about debt consolidation loans and debt repayment options, schedule an appointment with our debt consultants at 866-690-3328.