Online consolidation loans: It’s an easy and fast process
Online consolidation loan according to Consolidation Now can be a very powerful tool for managing the personal finances of any family and get out of loans.
Following the article entitled “The Dilemma of Debt Consolidation”, I would also like to leave my thoughts. I published a book on Personal Finance, called the “Personal Finance Manual”. In this book, I dedicate some pages to the theme of the consolidation of credits, leaving here some reflections:
I quite like the issue of Debt Consolidation, especially as it is a topic that has been looked at by some personal finance writers with great skepticism.
With this caution, the potential gain from consolidation is quite powerful ( now less, given the significant increase in spreads charged by the bank ).
In Our Understanding, There Will Be Two:
- First, debt consolidation as it is done these days may result in an increase in the average repayment term of the smaller loans ( but at a much higher interest rate );
- Secondly, the financial relief associated with reducing average interest rates and increasing the maturity of the loan may lead to irresponsible behavior by raising the debt again. That is, it could lead to more consumption and a strengthening of the negative spiral of indebtedness.
Aware of these risks, our approach will be different, seeking to harness the full potential of debt consolidation and avoid risks.
We propose that when you consolidate, you negotiate to maintain your banking service. That is, the average interest rate will go down ( since you will use the property guarantee to pay the credit card, for example ) which, everything else constant, will result in the reduction of the installment. So, why not keep the monthly installment by making the adjustment to the term of the loan? Does it make sense?
It makes perfect sense.
You may incur some writing costs. However, saving is extraordinary and it avoids risking further indebtedness. Incidentally, you will see savings in significantly reducing the time it takes to pay off your debt. You will find yourself freer, faster, of banking dependence… and this is an extraordinary incentive, as it induces an increase of your freedom.