Debt consolidation loan -Searching for the best debt consolidation companies

Searching for the best debt consolidation companies? Here they are

money payment

The debt consolidation companies at aims to consolidate your debts into one loan. Monthly payments can then decrease to less than 60%. You only repay one credit to a single financial institution. The different monthly payments that you had to pay are therefore reduced in one single payment.

The credit is a way to better understand the duration of a loan, take advantage of lower monthly payments and have good budget management.

Lighter monthly payments

Rates in credit revolve around 6 to 8%, which is 3 times lower than the revolving credit which is 20% and more. The saving on monthly payments is 60%. You get a longer-term with sliced ​​payments.

Increase in purchasing power

Loan consolidation means aeration on the end of the month.

loan consolidation

The repayment rate is 33% of total revenues. This is a reasonable rate, but it depends on each establishment. Yet above 33% the debt ratio becomes a very heavy burden.

The decrease in monthly payments makes it possible to have a larger sum for each month, in order to improve daily life or make savings to finance a new project.

The credit and maturity

The credit and maturity

The Credit is not granted for loans where maturities are close enough. Credit is not essential in some situations:

– An upcoming increase in revenues or a decrease in charges is in sight

– If your credit has been refunded up to 70%, a credit provides no benefit. Indeed a difference of a few euros compared to the initial amount is not interesting.

– In the case where the total amount of capital outstanding remaining divided by the number of monthly payments over 7 years for consumer credit and 12 years for a mortgage credit gives a number greater than 30% of income, the credit is not an attractive option.

If the debt ratio exceeds 40% the credit is effective.

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