Whether it's buying a new car, paying for your education, new furniture or any other expense, loans add up quickly. They can often be at very high interest rates with monthly bills that are difficult to manage. Manage your debts well reducing your various monthly payments as much as possible are the best solutions to quickly stop needing a loan! Without waiting, consolidating my credits is an excellent solution to save on my monthly payments.
What we call debt consolidation is a strategy that can simplify the management of monthly payments. This by consolidating all your debts into a single payment. It often comes with a significantly lower interest rate than what you were paying each month before. While giving your rating a nice boost at the credit bureau.
One of the effective ways to consolidate your debts is to take out a personal loan. With the transfer of your various loans such as leasings, private loans and credit cards in order to have only one much lower monthly payment.
Let's take a closer look at what grouping my credits can bring me as advantages.
# 1 Reduced interest rates
Most small debts will have very high interest rates. They can dramatically increase the debt you owe. By paying off several high-interest debts with a loan with a lower interest rate, you'll pay significantly less in the long run. Your monthly repayments will therefore be lower and your budget will therefore be better.
# 2 can improve your credit score
Speaking of credit scores (registration in the ZEK and IKO central files), another benefit of debt consolidation is that it can give your current score a good boost. If you consolidate by taking out a personal loan, you're likely to see an increase in your score. This in just a few months, because you will reduce your credit utilization rate. A good note in the central files = good loan conditions!
# 3 Less stress
Consolidate your debt into one manageable payment will significantly reduce your stress and will help eliminate the clutter of multiple payments. Money issues like debt are known to lead to stress. By taking control of your finances with one monthly payment, you'll quickly find yourself in a better financial position with a budget under control.
# 4 Combining my credits allows me to repay faster
It is not uncommon for balances on credit cards or small loans to take years to be fully paid off. After all, they earn interest on what you owe! So lenders don't care if it takes you 5 years or more to pay off your debt. One advantage of debt consolidation is that this process will allow you to schedule regular repayments. This is so that your loans are repaid within a reasonable period of time.
Final thoughts ...
As with any funding request, it is important to carefully assess your own situation. This is to determine if this is the best solution for you and what your current budget is. Consolidation of loans generally offers significant gains and therefore it is a very interesting option to consider.
I want to consolidate my credits and find a balance in my budget!
Without further ado, make a non-binding request and see together how we can help you with our exclusive solutions. Making a redemption and grouping your credits with Lica is an excellent solution to save money each month.