Why Our 4 Pillars Debt Consultants May Not Recommend A Consolidation Loan

One of the first things that many people look at to solve debt problems is a debt consolidation loan. Our debt consultants at 4 Pillars may recommend this option to individuals and couples in the Victoria area. However, it is not always the right solution. In these cases, our 4 Pillars debt consultants may recommend other options, and we always provide our clients with information on the pros and cons of each possible solution.

A consolidation loan is a single loan that is used to cover the outstanding balance of debts. These loans are obtained through a bank or financial institution, and they may be offered as either secured or unsecured loans.

Pros of Debt Consolidation Loans

The one loan pays off all debt, which means only one monthly payment and limited risk for missed or partial payment issues. By shopping around, many individuals in the Victoria area can find a low rate loan that saves money by eliminating the high interest rates charged on balances by credit card companies.

Consolidation loans are also structured over a specific period of time. This often helps individuals to see the light at the end of the road with regard to their debt.

Cons of Debt Consolidation Loans

As these loans are through banks, it may be difficult for individuals with poor credit ratings to obtain a loan. Credit card consolidation loans are extremely risky as they offer low introductory interest rates that increase dramatically once that period is over.

Missing or partial payments on consolidation loans can create additional credit score problems and issues. If you are considering consolidating your debt, talk to a 4 Pillars debt consultant to see your options. Give us a call today at 866-690-3328 for an initial consultation.