Searching for the best debt consolidation companies? Here they are
The debt consolidation companies at https://consolidationnow.com/loan-consolidation-companies/ 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.
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 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.