Channel your existing loans in one venue through Blend.ph
Worried about your credit card bills, car loans, and student expenses? Don’t worry – you are facing the same predicament as millions of people in the world. And the reality is, debts suck, but they are unavoidable. Now, you are in the midst of facing paying all of your minimum monthly payments, and there’s no denying that it can be overwhelming at times. This is why you should explore debt consolidation.
In this article, we will explore what debt consolidation is about and how you can pursue this with Blend.ph.
What is Debt Consolidation?
Debt consolidation can be defined as the combination of a number of unsecured debts from separate entities into one monthly bill. Depending on where you will organize this, you have the opportunity to acquire a lower interest rate and feel a little less free from varying deadlines.
Aside from relieving you from the stress you have to deal with, you will be saying goodbye to your attempts of keeping different dates and bills from multiple companies you have borrowed from.
There are several ways to approach debt consolidation: you can apply for a personal loan, enroll in a debt repayment program, transfer your other balances to a single credit card, use a home equity loan, and borrow from a savings plan. Your options depend on the actual loans you have to combine and the resources available to you.
The Realities of Debt Consolidation
If you look at it closely, debt consolidation can be quite impossible to pursue. This is because each loan you have comes with their own repayment terms and interest rates. So, in the eyes of business, borrowers have opened a specific contract with each company they acquired a loan from.
If that’s that case, how do you consolidate your debts? The easiest way to do so is to acquire a large loan and use that money you get to pay off your smaller loans that you need to pay off. This financial strategy will only work if your existing loans have a higher interest rate compared to the company where you plan on acquiring a debt consolidation loan.
The Advantages of Debt Consolidation
- You only have to pay once, instead of worrying about varying deadlines each month. When you unify your loan and bring it to one place, managing everything will become so much easier and straightforward.
- There is also a possibility, depending on your credit assessment, for you to get a lesser amount of interest that you have to pay on your debts – allowing you to pay off your debt much faster.
- By using a personal loan to consolidate all of your existing debt, you can acquire a fixed rate and fixed repayment terms. This will allow you to budget so much better and helping you improve the way you address your credit.
The Disadvantages of Debt Consolidation
- The best and lowest rate will not be available for you if you do not have a good credit rating or if you have not been paying your other loans on time. You must be prepared to get a similar rate, or even a higher one, if you haven’t been up to date on your loans.
- For debt consolidation, you should never miss a payment. As they come with fixed terms, you should be ready to settle every time your repayment schedule comes.
- Because of the fixed terms, you might have to an early payment charge should you decide to repay the loan earlier than scheduled.
The Responsibility Required In Acquiring Credit
Managing your debts is not an easy task. Debt consolidation may be the perfect short-term fix for you to alleviate the problems your loans bring, but it is also important to take charge on this endeavor and be very careful with your approach.
For instance, debt consolidation might mean that you open your doors for the possibility to be buried under even more debt. Yes, you will free up your credit. But, it does not mean that you are free to spend these freed credit lines. Again, if you are not careful, there is a high chance that you will just add up to your current debts.
Manage Your Debt with Blend.ph
Blend.ph is the Philippines’ leading online Peer-to-Peer Lending Platform. Let us give you a head start in your journey towards achieving balance in your life. Blend.ph offers a personal loan program to help you get the funds you need to keep your loans consolidated in one place. If you’re interested, create a Blend.ph borrower profile and start today!
The Flip Side: Help Someone Else Consolidate Their Debt
Are you someone with some extra cash looking for a quick and easy investment? Do you have a good heart and are looking to support our countrymen in need? Here at Blend.ph, we believe there is strength in people helping people.
You can help someone manage their debt to get a semblance of hope in their future. Lend a hand (and your extra cash, of course) to people who need to consolidate their debt. Be a Blend.ph investor today.