What Is Debt Consolidation Loan?
Many Debt Consolidation Loan Companies offer a powerful debt relief solution called a consumer proposal, which reduces debt to just a percentage of the original amount! The balance is ignored.
Debt Consolidation loan consolidates all the creditors of the borrower into a single loan! Unlike a Consumer Proposal, one is required to pay back 100% of the debt with interest. If one has an excellent credit rating possesses assets to secure a loan and wants to best debt relief companies the debts into one monthly payment, then a bank consolidation loan is a great option!
The debt relief specialists may consider options that help in aligning one’s immediate needs very effectively.
A consumer proposal also is another option. This helps in consolidating all the debts into one monthly payment. Unlike a consolidation loan, one can pay back only a portion of the debt one can afford!
The best facilities offered by a consumer proposal are given below:
The verdict is legally binding on all creditors:
This includes CRA Taxes, Credit Cards, Payday Loans, Bills, and all other unsecured debt.
For 5 years one can keep paying with interest-free facility:
The interest charges are waived off in a consumer proposal. The tenure is up to five years, which helps the borrower to pay back the borrowed amount in a relaxed manner. The debt is combined into a single monthly payment!
All creditor calls and threats are stopped:
All credit collections and legal actions, threats, swearing are stopped. The collection team of the lender cannot overreact! There are no stressful emails, letters, and continuous harassment!
The assets are safe:
The borrower’s home, car, and other possessions are not at all touched by a consumer proposal initiative!
There are no hidden fees:
The hidden fees are abolished and no harassment on this front!
The payday loan and consolidation benefits:
The fees are very low:
Personal loans always have lower interest rates than payday loans! A payday loan can have fees that equal an APR of around 400%. The interest rates for personal loans typically vary from 5% to 36%, depending on the lender’s specifications.To consolidate one’s payday loans into a personal loan, one has to make just a single monthly payment.
Repayment on basis of the ability of the borrower:
The personal loans lending financial institutions who offer personal loans are very flexible and care for the borrower’s ability to repay the loan, not like the payday lenders! The lender needs to be superbly confident that one can repay the amount borrowed to be granted the loan amount!
The loan amount cannot be renewed:
Personal loans come with a facility with instalments, which means one can borrow a fixed amount of money and repay it with interest in monthly instalments till the debt is paid off. Once the loan is paid off in full, the loan account is closed.
The repayment terms are flexible:
The payday loans need to be repaid within two to four weeks, personal loans have the flexibility of repayment terms that range from 12 to 84 months. One can choose the term that works best for one’s budget.