Are you struggling to pay off multiple debts? Has the interest rate of your debt skyrocketed? It can be pretty stressful to pay a loan that carries high-interest rates. What’s worse is when debtors threaten to repossess your belongings, including your home, cars, or other properties.

While the term “debt” may create a negative impression, it’s crucial to bear in mind that not all debts are harmful if you plan them well. If you strategize your repayment plan, you may be able to relieve yourself of stress and collateral-repossession threats.

Here’s how Freedom’s debt consolidation loan can help you do just that.

1. Debt Consolidation

A popular strategy when it comes to debt is debt consolidation. Freedom’s debt consolidation loan can help you escape the accumulation of high-interest personal loans, credit cards, and other debt.

The process involves taking out a loan to consolidate your multiple debts into one. Usually, your loan will carry a lower-interest-rate than what you’re paying on current debts. Another benefit is that you make a fixed monthly payment, taking the guesswork out of bill paying.

2. Other consolidation benefits include:

Lower Interest Rates: Bankers and credit unions have fixed interest rates on their loans. The problem with having multiple small loans is that each loan will accrue its interest.

It gets worse if you miss paying a loan at a particular time because you will accrue penalties and extra interest compounded on your next payment. However, having all your loans combined into one large loan could save you from the mess.

Loan consolidation dictates that you need to focus on one loan, therefore, one interest. The advantage of this is that the interest rate is lower than the banks’ and credit unions’ rates. Thus, Freedom’s debt consolidation loans can help you save money that would have accumulated on high-interest rates.

Easier to Manage Payment Deadlines: It can be pretty annoying to owe money to multiple lenders who demand payment now and then. Worse still, picture the expense you might have to incur if some of your lenders have very high-interest rates and limited payback time. When the deadline is due, you might have to hope the debtors do not repossess your belongings.

A debt consolidation loan means you combine all your debts into one huge loan. Therefore, you only need to worry about one regular payment and hence one deadline. Consolidating your loans means you no longer must keep track of multiple deadlines from various creditors. Therefore, Freedom’s debt consolidation loans can help you manage your payment deadlines more effectively.

Help Improve Your Credit Score: Managing multiple loans may lead to failure to pay some loans on time. That failure can negatively impact your credit score, which limits your access to future loans. Moreover, a low credit score could lead to increased interest rates if you cannot get a loan.

Whether you qualify for a loan or not depends on your credit score. Freedom’s debt consolidation loans can help you get new loans with favourable terms and lower interest rates. The result will be a credit score improvement that will depend upon your repayment of a single debt.

1. Predictable Monthly Payments:

Banks and credit unions have different interest rates that vary all the time. If you have multiple loans and the interest variation is unpredictable, you will pay different amounts of money depending on the current interest rates every month.

That may affect you since you might be unable to plan your loan repayment program confidently. However, Freedom’s debt consolidation loan can help you avoid the stresses of multiple debt payments by providing you with a simple payment scheme that can save you money and improve your overall financial health.