Consolidation Loan Kitchener
If you’re struggling with debt, or tired of managing multiple monthly payments, a consolidation loan in Kitchener could be the answer. Consolidation loans, also referred to as debt consolidation loans, make it possible to combine several loans into one, often at a lower interest rate than you had before. The benefits of consolidation loans can be long-lasting, but they’re not foolproof. If you are considering this financial strategy, we encourage you to contact the professional team at Access Mortgage today! Read on for more information about consolidation loans, and how Access Mortgage can get you on the path of debt relief.
What is a consolidation loan in Kitchener?
Simply put, a consolidation loan is a new loan that consumers use to pay off their other debts. With loan consolidation, consumers might be able to go from juggling several different loans to having a single one with just one monthly payment.
Here’s an example of how loan consolidation might work:
Let’s say a consumer named Steve has five credit cards with total balances of $10,500. The annual percentage rates (APRs) on his cards vary from 8 to 15 percent, and he must make five separate payments each month to keep up and avoid delinquency and late fees. Exasperated by the complexity and cost of his credit card balances, Steve takes out a consolidation loan and uses the proceeds to pay off his $10,500 in debt. Once he pays off his cards, Steve is left with a single loan (his consolidation loan) and a single payment every month. Because the interest rate on his consolidation loan is only 7 percent, Steve is also able to save on interest every month.
What are some benefits of a consolidation loan in Kitchener?
While it might sound counterintuitive to take out a new loan when you’re already juggling several debts, loan consolidation comes with notable benefits:
One Simple Payment:
One of the biggest benefits of consolidation loans is the simplicity they can bring to your life. Instead of juggling several credit card payments, you can conveniently lump them together.
Lower Interest Rate:
Depending on the rate environment, you could get a better interest rate than you’re paying on your high-interest debts. Of course, the rate you’ll qualify for depends on factors such as your credit score and job history.
Fixed Rate On Your Debts:
You may be able to transition from a variable rate to a fixed one. You can also go from a place where you have multiple loans with various interest rates to a single loan with one more manageable rate.
Extend Repayment Terms:
If you’re struggling to keep up with all your payments, you could use a consolidation loan in Kitchener to extend the repayment timeline of your debts and get a lower monthly payment. This won’t help you pay off debt faster, but it can make your debts more manageable.
For more information about how a consolidation loan in Kitchener from Exert Mortgage can help you achieve debt relief, please feel free to continue browsing through our website. Click here to find our contact information and to fill out our contact form.