What is Debt Consolidation - Quick Consolidation Loans

What is Debt Consolidation

What is Debt Consolidation

If you have come to the realisation that it’s time to consolidate your debt, instead of developing a bad case of ‘swiper’s wrist’ and an even worse case of debt stress, then you may have considered debt consolidation.

Debt consolidation can be very beneficial, if you are struggling to keep track of all your accounts, loans and various credit providers, as it allows you to merge all of your debts into one so that you only have to make one monthly payment. It can also help you to meet your monthly payments, as debt consolidation often comes with a reduced overall interest rate.

How it works with some financial institutions is that you provide them with a list of all your outstanding debts and then, if you qualify for a debt consolidation loan, you will be credited with the total amount you need, in order to settle all your debts with your various credit providers. In this way, you will end up only owing this amount to the financial institution who consolidated your debt, which means you will also be paying a much lower interest rate – instead of paying off many accounts with high interest rates.

Other lenders require that you provide them with a settlement letter from your current credit providers. Thereafter, should you qualify, they will settle all your debts for you. In this way, you won’t be faced with the temptation of using the debt consolidation loan for other things, which could cause you to sink even deeper into debt.

Should you opt for debt consolidation, you will probably save on interest and other costs, as a single payment to one financial institute is more cost-effective than paying off a number of financial institutes, charging different administration fees and bank charges that tend to be particularly high.

Furthermore, you won’t have to deal with your credit providers, should you choose the debt consolidation option at Quick Consolidation Loans, as your debt counsellor will deal with all of your credit providers on your behalf.

QCL offers you a consolidation solution that will allow you to only make one payment towards your debts each month, yet doesn’t require you to take out a loan, if you are concerned about creating more debt for yourself.