Debt consolidation is a situation where someone obtains a new loan in order for them to pay out a number of smaller loans, debts, or bills that they are currently attached in making payments on. In doing this they can effectively bring all these debts together into one combined loan with one monthly payment that they can track easily. Since this is bringing multiple debts together and combining them into one loan, this is often being referred to as “consolidating” them. That’s why it’s often being called a debt consolidation loan.
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- It simplifies their finances. Instead of them having many debt payments that they need to keep track of and pay on time every month, they now have only one that they should take care about.
- It can save them more money by reducing their interest rate. It does this by paying off high interest debt with a lower interest rate through debt consolidation loan (provided you can get approved for a low interest rate consolidation loan).
- It can help to make life easier with a smaller monthly payment. This can be true if you consolidate at a lower interest rate or then have a longer period of time (amortization period) to repay the loan.
- It can pay off debt faster. However, this may only works if you are able to obtain a lower interest rate and keep your current monthly debt payment pretty much the same as it is now. This then will allow more of your monthly payment to actually pay down your debt (the principal) since less of the money is being eaten up by interest.
So why wait when you have been rejected by banks because if in urgent times, if the normal loan cannot be approved by commercial bank, you can try to consider private lenders. Restructure your loan now by borrowing with money lenders in order for you to clean up your credit profile immediately. With a perfectly clean credit profile, this would enable you to borrow from the commercial banks, and use this money to settle your debt consolidated amount. We are the top licensed money lender in this debt consolidation field, specializing in KL and Selangor.
Do you have interest in making Personal Loan or Business Loan? Call Us Now +6011-2939 9300 or Email at info@LenderLoanMalaysia.com for more info!