subject: Too Much Plastic Card Debts – How You Can Be Entitled to a Debt Consolidation Bailout [print this page] Debt consolidation is the process of amalgamating several different loan payments into one monthly loan payment. Debt consolidation could lower the amount of time it takes for an individual to repay loans, lower the interest rate or lower the total amount of money due each month. Also when only one payment is due each month, the incidence of missing out on the repayment amount due every month is reduced to the minimum. Making payments on time can also significantly increase the debtor's credit score.
However, not everyone is eligible to manage debts through a debt consolidation loan. One of the primary requirements to secure a consolidation loan is that you should be above 18 years of age. You should also provide adequate proof that you have a steady job with a consistent income to show that you are in a position to make monthly payments on the loan amount. Most companies require that you provide evidence of employment for at least 90 days prior to applying for a consolidation loan.
Another significant factor that will determine your eligibility is your exact requirement from the loan. To reap the maximum benefits, fix up on the lowest amount to borrow. This can be calculated as per the highest interest that you would be paying on your debts. Also determine the period for which you require the loan as lenders often provide loans easily if you borrow for a fixed time and pay a certain amount in monthly installments.
In order to avail the option of debt consolidation, you should have more than one type of debt or loan in your current debt. Even if the debts are of the same category, it can be consolidated provided that the loans are shown as separate ones. Most credit card companies also insist on a minimum credit score to agree upon debt consolidation. If your credit score meets the requirement of the creditors, ask them for quotations on the loan interest and other terms and conditions. It is recommended that you secure quotes from at least a few lenders so as to get the best rates and terms of offer.
Too Much Plastic Card Debts How You Can Be Entitled to a Debt Consolidation Bailout
