Getting out of the vicious cycle of loans isn’t the easiest job. If you are one of such people who are in deep trouble thinking about how to solve their debt issues and are in search of a personal debt consolidation service, you’ve landed on the right spot. We are going to answer all your queries regarding debt consolidation in order to make things easier for you. You will be able to make the right decision after you’ve been enlightened with all the basic knowledge.
What Is Debt Consolidation And Why You Should Opt For It
Debt consolidation, simply put, is to take a bigger loan in order to pay back all your other, smaller loans. This option may seem odd, but it does have benefits. Look at it this way, if you have to pay small installments of your previous loan, you’ll end up paying a lot of interest which will increase the total amount by a whole lot. However, if you take debt consolidation and pay back all the loans in one installment, you will pay a minor interest rate. That right there is a huge saving. Along with that, if you have personal assets like a home, you can get an even better deal.
How To Get Approved For Debt Consolidation
Of course, you don’t want to get stuck with more loans after paying your previous ones. For this reason, debt consolidation has some strict requirements that must be fulfilled otherwise; the debt consolidation loan is not approved.
The first thing that determines whether or not you will get debt consolidation loan is your income. You must be able to pay back the loan. Different companies have different requirements. There is a fixed ratio between loan and income that must be fulfilled. Along with that, around 15% of your income must be disposable income.
Next is your credit history. The company who is going to give you such a huge sum of money needs to make sure you will pay it back. This is determined by your payment record. This is the record of your previous payments. If you’ve been paying all your debts, loans, and bills in a timely manner, you don’t have to worry about this part.
Your residence and job stability is another determining factor for approval of your loan. If you have been employed in the same place for more than a year and have been living in the same residence as well, you have an upper hand once again. This kind of stability shows that you’re more likely to pay back your loans in time and have a serious approach towards life on a whole. Lastly, if you have valuable assets in possessions, companies will prefer giving loans to you. This doesn’t completely limit your possibilities for loan approval. However, if you own a home, you just have higher chances. Now that you know why you need debt consolidation and how to get it, start your debt consolidation service with us right away! Debt Consolidation Will Save You Thousands in Canada Apply Now.