Financial planning is of utmost importance when it comes to dealing with any of the credit products. People don’t plan to fail, in fact, they fail to plan, and which results in heavy debts. Debt consolidation is the act of taking out a new loan to pay off other liabilities and consumer debts, generally unsecured ones. Debt consolidation loans don’t erase the original debt but transfer a consumer’s loans to a different lender or type of loan.
If you qualify it gives you the flexibility of having just one single debt which you can focus on paying off. Secondly, the interest rate in debt consolidation is fixed and much lower than the interest rates on other credit products which are much higher. Lower interest rates create room for you to make more payments towards your principal and allowing you to pay off your debts quickly. Interest rates typically vary between, 8% to 15 % depending upon your relationship with FI, your credit score and other internal factors which are taken into consideration for your eligibility. Talk to our financial advisors today, to know more how we can help you to pay off your debts sooner.