• Home
  • Advertise
  • Contact Us
Monday, August 15, 2022
No Result
View All Result
NEWSLETTER
LondonDailyPost.com
12 °c
London
21 ° Fri
18 ° Sat
17 ° Sun
15 ° Mon
  • UK News
  • World
  • Health
  • Business
  • Science
  • Tech
  • Entertainment
  • Sports
  • Lifestyle
  • Travel
  • Politics
  • UK News
  • World
  • Health
  • Business
  • Science
  • Tech
  • Entertainment
  • Sports
  • Lifestyle
  • Travel
  • Politics
No Result
View All Result
LondonDailyPost.com
No Result
View All Result
Home World

Is Getting a Debt Consolidation Loan Worth It

by Natalie Roberts
March 31, 2021
in World
3 min read

The beauty of debt consolidation lies in the fact it can be easier to attack certain problems all at once, rather than in a piecemeal fashion. Rolling as many qualifying debts as possible into a single obligation allows you to apply economies of scale to repay debts sooner and for less out of pocket. Still though, there are times when it’s appropriate to ask, is getting a debt consolidation loan worth it?

The reality is that debt consolidation, like every other strategy is best employed under the proper circumstances. Otherwise, it can create more problems than it solves. Here are some questions to ponder before making the decision.

DO I HAVE A GOOD CREDIT SCORE?

The biggest advantage of debt consolidation is the ability it affords you to lower the interest rates you’re paying on outstanding liabilities. For example, the average interest rate on credit card debt these days is 20.8%, according to the personal finance advice site The Balance.

Meanwhile, the interest rate on a personal consolidation loan can be as low as 3% or as high as 36% — depending upon your credit score. A 680 or better can get you the best available rates, assuming your income and other obligations line up.

Another popular option, a balance transfer credit card, also bases your ability to qualify upon your credit history. These cards often come with an ultra-low or even a 0% introductory interest rate — for borrowers with strong credit histories.

CAN I AFFORD THE MONTHLY PAYMENTS?

Another factor determining the efficacy of a debt consolidation loan is the amount of money you’re bringing in each month. While it should go without saying, it does bear repeating that you should be making enough money to enable you to comfortably make the loan payments each month.

Before applying for a debt consolidation loan, it’s a good idea to create a spending plan to make sure you can apportion enough cash to repay the loan, while still meeting all of your other responsibilities and enjoying living your life. This means you’ll need to get an idea of what the monthly payment will be on that consolidation loan to be certain it will fit into your budget before taking it.

HAVE I FIXED THE UNDERLYING ISSUE(S)?

Life happens, sometimes it’s good — sometimes it’s bad. Accidents, sudden medical emergencies, and huge unexpected repair bills can drive us into debt if we don’t have an emergency fund set aside upon which to fall back. Moreover, a cascading series of such events can push us to the brink of insolvency, due really to no failing of our own.

However, whipping out the plastic every time a new pair of red-soled shoes catches your eye, or a superhigh-definition 77-inch TV calls your name,can also push you beyond your ability to meet your obligations comfortably. It’s important to be certain that those impulsive spending habits are under control before taking a consolidation loan.

Otherwise,you’ll justmake a bad situation worse.

With the above points in mind, perhaps a better question here would be whenis getting a debt consolidation loan worth it? The answer is when you can get a lower interest rate, afford to repay the loan comfortably and avoid spending recklessly until the debt consolidation loan is paid off.

Consolidation is likely the answer you’ve been seeking if you can answer yes to all of those questions. On the other hand, it might not be the best move for you at this time if your answer is no to one or more of those questions.

mm

Natalie Roberts

Natalie works as an editor who monitors all the articles being published on the site for content accuracy and language consistency. She also writes intellectual news pieces for the technology section.

Next Post

Clément Mateu shares his secret for the road to the highway

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Latest News

GULFCOIN- APPROVED BY DUBAI AND FIVE OTHER COUNTRIES

August 12, 2022

Moving to Manchester United

August 11, 2022

“You need to offer people services that can provide actual results,” says entrepreneur Vedat  Aktepe, the brain behind Bonita Hair Clinic.

August 11, 2022

Bahar Erensayin: Rising to the top as a one-of-a-kind presenter and journalist from Istanbul.

August 11, 2022
Picture of an implanted Soin Spinal Cord Stimulator.  

Chronic Pain Redefined: Soin Neuroscience Gets Positive Results From Its Novel Spinal Cord Stimulator

August 11, 2022

Rap Artist Ross Taxin Conquers Atlanta Music Industry With His Music

August 7, 2022

Businessman, Author, And Music Manager Jerry Becerra Continues To Impress

August 3, 2022

Explore Beautiful Places with Voyage Prive

July 30, 2022

From Travel Influencer to Social Media Mentor, Samantha Saglibene Tells All

July 30, 2022

Meet Charles Sogunro, an Entrepreneur Disrupting the Forex Markets!

July 29, 2022
  • Home
  • About
  • Team
  • Contact Us
  • Editorial Policy
  • Privacy Policy
  • Cookie Policy

© 2019. London Daily Post.

No Result
View All Result
  • Home
  • About
  • Team
  • Contact Us
  • Editorial Policy
  • Privacy Policy
  • Cookie Policy

© 2019. London Daily Post.

Login to your account below

Forgotten Password?

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In