Is Debt Consolidation The Way Out Of Your Debt? (2017 Update)

Debt Consolidation

Debt is no one’s friend, and if you have one, you may be thinking how to get out of it quickly. One of the few options you may be considering now is debt consolidation. Well, this option will work well if you do it the right way.

In many cases, people consolidate their loans by taking out a second mortgage or home equity loan. Debt consolidation has the advantage of combining all your debt payments into one single payment, lowering the interest rates and your monthly payments.

While this option may look more manageable, consider the followings things before you decide to consolidate your loans.

Basics of debt consolidation

You can consolidate your debt using a home equity loan or a second mortgage. You’ll use the new loan to pay off your credit card balances and other loans so you’ll be left with only one payment to make each month. Be extra careful when deciding to choose this course of action because some lenders offer an unsecured debt consolidation loan whose interest rate is very high.

How much will I be saving on interest?

Consolidating your debt extend the duration of your loan and allow you to make lower payments. However, the initial interest rate may seem lower but at the end, you may end up paying more in terms of interest than you would have actually paid if you never consolidated the loan. Be keen on the numbers, find ways to pay off the debt faster.

Avoid changing unsecured debts into secured debts

When you consolidate your debt, the consolidation loan you get will change your unsecured debt to secured debt.  So in the unlikely event where you’re unable to pay your home equity loan, you lose your home.

Similarly, in the unlikely event where you’re unable to pay for your credit cards only, your credit score drops, but you still retain ownership of your home. Always make sure the option protect your assets.

Debt consolidation may make you worse off than before

In reality, debt consolidation loan may not help you spend within your budget. If you fail to face the real problem on how you spend debt consolidation loan may leave you owing twice the money.  Stick to your budget or else things may not work very well for you.

Available alternatives

You may never get out of debt without addressing the reasons why you’re in debt. Therefore, sit down and prepare a budget and a debt repayment plan. Exploit all the possible alternatives, reach out to your creditors and see if you can negotiate the payments and interest rates with them. You may come up with a rewarding system to appreciate your progress.

In overall, a debt consolidation loan comes with benefits and drawbacks, and if you are not careful before getting the loan, the effects may result in more serious financial crisis. And because this was not your goal, weigh the options available ad see if taking a debt consolidation loan will really help you get out or will leave you worse off than before.

Best Credit SG Pte Ltd

Formerly known as Cing Dien Credit, we have rebranded ourselves and is now serving you as Best Credit SG Pte Ltd. We have been a licensed moneylender in Singapore since 1985! Making us one of the longest standing moneylender in Singapore. As one of the best money lender in Singapore, we have help numerous people who are in need of money since the day we started! Need cash urgently to settle some problems? Let us know. We are confident that we are able to provide you with the necessary cash. Our doors are open from Monday to Friday 11 am to 8 pm and Saturday to Sunday 12 pm to 5 pm.

Operating all these years has help us to accumulate valuable experience that has help us to understand your needs better. In addition, it has also allow us to come up with better solutions for your cash problems.

Furthermore, Best Credit is one of the money lenders open on Sundays! We are open every day except public holidays to serve your needs.

To find us:

You can visit our office at Blk 372 Bukit Batok Street 31 #01-374 (Level 2) Singapore 650372. The closest MRT to us is Bukit Gombak MRT. Our office is situated directly across the road from the MRT station. Drop by our office today for a free consultation!

You can also choose to drop us a call at  +65 6272 5538 anytime you have a question about our services!

23 thoughts on “Is Debt Consolidation The Way Out Of Your Debt? (2017 Update)

  1. Nice weblog right here! Also your site a lot up very fast! What host are you the use of? Can I am getting your associate link for your host? I want my site loaded up as quickly as yours lol

  2. You really make it seem really easy together with your presentation however I in finding this topic to be really something which I believe I’d never understand. It seems too complicated and very huge for me. I’m having a look forward to your next put up, I will try to get the cling of it!

  3. Thank you for some other informative website. Where else may I get that type of information written in such a perfect method? I have a undertaking that I am simply now running on, and I’ve been on the glance out for such info.

  4. Asking questions are in fact good thing if you are not understanding something fully, but this piece of writing provides nice understanding yet.

  5. Wonderful beat ! I wish to apprentice while you amend your website, how could i subscribe for a blog web site? The account aided me a acceptable deal. I had been a little bit acquainted of this your broadcast offered bright clear idea

  6. I will immediately clutch your rss as I can not find your e-mail subscription hyperlink or e-newsletter service. Do you’ve any? Kindly allow me understand in order that I may just subscribe. Thanks.

  7. It is perfect time to make some plans for the future and it’s time to be happy. I’ve read this post and if I could I wish to suggest you few interesting things or tips. Maybe you could write next articles referring to this article. I desire to read more things about it!

  8. Generally I don’t read post on blogs, however I would like to say that this write-up very compelled me to try and do it! Your writing style has been surprised me. Thank you, very nice post.

  9. I delight in, result in I found just what I used to be having a look for. You’ve ended my 4 day long hunt! God Bless you man. Have a nice day. Bye

  10. Heya! I’m at work surfing around your blog from my new iphone 4! Just wanted to say I love reading your blog and look forward to all your posts! Carry on the excellent work!

  11. Hi, I do believe this is a great web site. I stumbledupon it 😉 I may return once again since i have book-marked it. Money and freedom is the greatest way to change, may you be rich and continue to help others.

Leave a Reply

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