Debt Consolidation Loans with Easy Approval
Like with other financial products that are available today, there is an ongoing debate about the merits of debt consolidation loans. There are experts that claim that it is the smartest move that people deep in debt could make. Then there are those saying that the problem with debt consolidation is that it only cures the symptom and not the root cause of a debt problem.
The Problem with Consolidating Debt
Those who are arguing against debt consolidation say that it doesn’t really live up to the promise of resolving issues with debt. It really doesn’t resolve the cause. It merely touches upon the symptoms. In this case the symptoms are numerous debts and financial obligations that are hurting the consumer’s budget and credit rating. The cause of all those symptoms is mostly lack of financial planning.
Taking Care of the Symptoms
Opponents of debt consolidation say that paying off all the debts does not resolve the issue because the cause of the problem is still there. The tendencies that drove the person to keep on borrowing are still present after going through debt consolidation. Statistics show that almost 80% of those who consolidated their credit card debt saw the amount that they owed growing back. They haven’t learned their lesson.
The Usefulness of Consolidating Your Debt
On the other end of the spectrum, there are those who claim that combining multiple debts into a single loan is a good idea. There are several benefits that they claim for the practice. Here are some of those benefits.
- Lower interest.
- Lower monthly payments.
- Easier to keep track of.
- Reduced chances of missed payments and late fees.
- Set the credit standing in order.
- Easy approval
Lower Rates and Payments
There is a possibility of getting lower interest by consolidating your debts. It is just a possibility because you would still have to ensure that the loan that you would be getting to pay off the smaller ones would have lower interest and easy approval. If you are not careful there is a chance that you could end up with an even higher rate.
When it comes to monthly payments, you can lower them because in most cases the terms for debt consolidation loans are longer. That means the total amount is spread out into more monthly payments which would be lower. That has a downside, though, since it means you would have to stay in debt much longer.
Restoring Your Credit Standing
Another serious advantage of debt consolidation loans with easy approval is that it can be a huge step towards restoring your credit standing. Paying off multiple debts can be such a huge boost to your credit score. You would have to wait longer to achieve the same kind of improvement of the credit rating if you maintained multiple smaller debts.
Those are the two sides of consolidating your debt. You can now decide which would be a better option for you.