Applying for a debt consolidation loan is a relatively straightforward process, but is not always the best solution in every situation. If you are struggling with debt from multiple lenders, and feel that a consolidation loan is the best option for you, then seeking financial help from a reputable company can be extremely valuable.
In the case of a consolidation loan, the company will usually give you a debt consolidation, to see whether consolidation will benefit you, and to assess your individual circumstances. Debt consultations are available at Free From Debt.
If it is determined that a consolidation loan is a viable solution for you, then you will be able to discuss the option of transferring your existing debt into one loan, owed to one lender, with one monthly repayment. The company will take care of the legal side, and will explain to you the ins and outs of the process, and how your repayments will work under the consolidation loan.
There are certain criteria that will affect your eligibility and final conditions when you apply for a debt consolidation loan:
Credit Score & History
Generally speaking, debt consolidation is available even when you have a bad credit rating, but your ratings will definitely have an impact on the type of consolidation loan you can get, and on your interest rates. A better credit rating can secure a better deal on the loan, while a questionable credit history may result in you only being able to take out a secure loan against your property; a much greater risk.
Most companies have a minimum and maximum amount for consolidation. This is usually around $1500+ minimum, and can be up tens of thousands of dollars maximum. Debt consolidation is a personal loan solution.
Overall Financial Stability
The loans company will take a look at your income and outgoings, and calculate your level of financial stability. This will also help them to work out the time it might take you to repay.
Importantly, debt consolidation is not always the best solution. The overall amount you repay should not be much higher than it would be without, you should end up with lower interest rates, and monthly repayments should be more manageable. If this is the case, then debt consolidation might be for you.
All of these factors help the debt consolidation company to draw up the terms of when you apply for a loan. They will calculate interest rates and repayment plans based on your financial circumstances. For a debt consultation to see if you are eligible for consolidation, contact Free From Debt today.