Debt consolidation refers to taking out a personal loan to pay off other debts. With debt consolidation, you can consolidate all of your high-interest debts into a single one. Hence you only need to pay off your debt once a month, instead of making multiple payments for multiple debts.

It is a hassle-free way to pay off multiple payments with a single payment in a month. Hence, it is easier to keep track of payments, ensuring that you have all of the information regarding the amount of money you have paid off and the remaining amount, all in one place.

Should You Consider Debt Consolidation?

When you opt for debt consolidation form a licensed moneylender, you can receive several benefits. Some of which have been discussed.

When you look at the benefits that it offers, it seems as though debt consolidation can be quite useful. Hence, many licensed money lenders offer this service to their clients.

  1. Say Goodbye To Multiple Payments: Find it hard to keep track of when you need to make your payments? Get rid of multiple payments with the help of debt consolidation. Now, you can pay off your debt with a single payment. Instead of making payments multiple times in a month, you can pay for all liabilities with a single payment.
  2. Lower Rate Of Interest: With licensed money lender debt consolidation, you can get lower rates of interest. Typically, unsecured credit card loans have a high rate of interest. Instead of paying off multiple high-interest debts, with the help of debt consolidation, you get lower interest, and hence, end up paying a lesser sum of money.
  3. Improve Credit Score: Want to get fast personal loan in SingaporeHaving a good credit score helps. Whether you get it from a bank or a licensed money lender in Singapore, a good credit score ensures that you get a lower rate of interest. When you opt for debt consolidation, it helps improve your credit score, as you are paying off your other loans on time.
  4. Pay Off Your Debt Faster: With debt consolidation, you can help pay off your debts more quickly. Because of high internet rates, and fixed monthly payments, it can take years to be able to pay off your debt. However, with the help of debt consolidation, all of your debts are combined into one monthly payment. Since you get a lower rate of interest with licensed money lender debt consolidation, with every payment, you can work your way towards paying off your actual debt instead of paying off the interest on your loan. Hence, you can pay off your loan much faster.
  5. Keep Track Of Payment Dates: When you have to pay off multiple debts, you need to keep track of the payment schedule. Paying on a wrong day, and the wrong amount can cause unnecessary stress and chaos. With the help of debt consolidation, you will only need to keep track of one payment, which is on a fixed day and of a fixed amount. Hence you will not need to worry about paying different amounts on different days. Rather you can deal with all of your debt at once.
  6. Relieve Your Stress: With multiple debts and payment schedule with several dates, it can be easy to feel overwhelmed. You are stressed about missing the date of payment, or you are worried about making so many payments in a month. When you opt for debt consolidating, you can relieve this worry. You will simply need to pay once every month to be able to pay off your debt. It is a fixed amount, which is decided based on your credit score and income. Hence, you are assured that you will be able to make the monthly payment when the time comes.
  7. Avoid Damaging Your Credit Score: If you are worried about missing payments since you cannot keep track of all of the payments that you need to make in a month, debt consolidation may be a worthwhile option for you. Even one missed payment can negatively affect your credit score. When you opt for debt consolidation, you have to keep a single payment date in mind, which is much easier than tracking multiple payments.
  8. Easier Budgeting: Debt payment is not the only thing that you need to worry about spending your money on. You also need to keep money aside for your bills, groceries and other utilities. When you have to track multiple payments, it is easy to miss one out and make calculation errors. With only a single payment in a month, it is easier for you to draw a budget for the month and stick to it. Hence, debt consolidation is better in terms of financial planning. You can get fast personal loans in Singapore from licensed money lenders, and ensure that you have sufficient fund to pay off your debt.
  9. Helps You Stay Healthy: Wondering how debt consolidation is related to health? When you have to keep track of multiple payments, it can be quite stressful. It is well known that stress over a prolonged period can affect your immunity system, and lead to physiological issues. When you opt for debt consolidation, you can ensure that you can reduce stress related to debt payments. Paying off your debt with a single payment every month instead of multiple payments can lift a huge burden off your shoulder, and help you feel more relaxed.
  10. Avoid High-Interest Rates: When you opt for unsecured loans, such as credit card debt, the interest rate I quite high and it keeps on adding up every month. Over time, with every payment, you are not working your way towards paying off the principal of your debt, but the interest. When you opt for debt consolidation, you can usually get a lower rate of interest.

Sounds too good to be true? In some cases, it can be. When you are opting for a personal loan from a moneylender, ensure that they are licensed. Make sure that you check their credentials in the Registry of Moneylenders to ensure that they are legitimate.

When you go to a licensed moneylender, you can be assured that you will get relief from your debt issues, and be able to pay off your debt conveniently.