If you’re juggling different types of debt, you may be overwhelmed with all the accounts you have to handle. After all, many Americans are in debt for various reasons ranging from student loans to business loans, medical care, or mortgages. To ease your burden, you may want to consider consolidating debt through companies like Symple Lending or using assets like your home or better credit cards.
One Payment Date
Different accounts mean different pay dates. However, with a busy life, it may be easy to forget to pay on time for one or several accounts, which can lead to late fees that may also balloon into over-limit fees. That can create a lot of stress for someone with several different accounts to manage. A consolidation plan puts all those accounts into one bill, which means you only have one payment to worry about. Having a simplified way of paying off debt can reduce stress and help you manage your time better.
Help Credit Score
If you’ve been worried about your credit score, consolidating your debt may be the solution you didn’t realize you needed. After all, paying late can bring down your credit rating or late payments. As mentioned, juggling several payment dates can make one forget them and have late fees, which will damage your credit rating. With one payment date to remember every month you’re much more likely to have timely payments, as well as a reduced interest rate. Those two factors can make it easier to pay down your principal, which also reduces your credit utilization ratio. Therefore, you may be able to raise your credit score at a faster rate than if you continued to keep accounts separate.
Better Interest Rate
Regardless of your debt, interest rates are part of the plan. The problem with those rates is it can take forever to pay back your debt when they’re too high. At least, with a consolidation loan, you have a better chance at a more favorable interest rate. A lower interest rate means more of your payments go to the principal. An interest rate ranging from 3% to 21% can make a huge difference in how much you’ll have to pay back monthly.
Get Out of Debt Faster
Maybe you’ve been paying off the same credit cards or a couple of loans for several years longer than expected. Because of the pros of a consolidation loan, which include a better interest rate, one monthly payment to remember, reduced stress and a different loan type, it can make it easier to get out of debt faster.
Many people are dealing with mountains of debt. Luckily, there are several solutions available to suit your needs. You can choose from a personal loan such as those offered by companies like Symple Lending, a lower interest rate credit card, refinance your home, and more. One loan to pay off several can put you a step closer to reduced or no debt.