Is there anything that can create a suitable way to pay off all debts into a single loan?
Yes, there is!
Debt consolidation is one of the most effective and relieving procedures that will merge all your taken out loans into a single one. This means you don’t have to track your different loan types, interest rates, and due dates. Debt consolidation will allow you to put them all into a single form and pay off all your bills hassle-free.
Due to its favourable terms like lower interest rates and flexible tenure, borrowers can save more through interest rates and easily manage their monthly expenses. When borrowers make one payment instead of multiple payments, they’re availed to grab a number of benefits. from lower interest rates to the less visible risk of collateral repossession.
But if you’re Singaporean, does it present the same advantages to you?
According to the terms and conditions of debt consolidation in Singapore, borrowers can easily maintain their increased debts. Furthermore, this consolidation loan Singapore also assists borrowers to pay off all debts and save more money from their high-interest rates.
Want to know about its various benefits associated with it?
let’s have a look at the following guide to know about those.
What is Debt Consolidation Loan?
Simply put, a debt consolidation loan is a more flexible payment option to get rid of the burden of paying off multiple loans individually. In this, a borrower can combine all their loans/debts into a single account and enjoy the potential benefit of paying off all bills conveniently. Hence, it brings an excellent opportunity for a debtor of multiple loans.
By following the several steps, a borrower can get access and merge all their debts. This won’t only improve your credit score but also assist in reaching long term financial goals. So, stick to your repayment cycle and lessen the burden with a more secure lower interest rate.
Benefits of Debt Consolidation Loan in Singapore
Keep Track of All Your Debts
It’s time to say “Bye Bye” to all high-cost debts! With the emergence of debt consolidation, a borrower isn’t only obliged to keep all their debt information into a line. But he/she can also easily manage all their monthly EMIs without the help of friends and family. Now, you don’t have to keep records of multiple loans’ terms and conditions. Just go with one and manage your account without scrolling through the paper again and again. The low-interest-rate will allow you to pay off monthly EMIs on time. Hence, it’ll make you a more responsible candidate when you make repayments on time.
Turn Multiple Payments Into One
What could be more relaxing than paying off all your debts on time?
As we discussed above, a Debt consolidation loan is about converting all your debts into a single one along with the low-interest rate. The loan is bound to make the repayment process simple and easy without affecting your monthly expenses. So, if you’re one of those who are struggling with high-cost debts, multiple EMIs and high-interest rates, it’s time to dip into debt consolidation. This will lessen the strain from your shoulders. With this, you can freely focus on one debt only without getting afraid of the deadlines for multiple payments.
Low Risk of Collateral Repossession
Debt Consolidation – refers to the best loan. It provides an opportunity to get a lower interest rate when you put your asset as collateral. If you’re regular in your EMIs, putting your assets as collateral is a great option. But if you’re irregular in making payments, you’ll find yourself in the hands of a poor credit score. And, there could be a chance of losing your property or other assets. But, debt consolidation will protect you from this situation. When you clear your payments through debt consolidation, you can get rid of the risk of losing your property.
Improve Credit Score
A nice boost in credit score through debt consolidation! By combining multiple loans into a single one, you can see a major improvement in your credit score in just a few months. Generally, a poor credit score and history leave a negative impact. Due to this, you won’t receive a loan at a low-interest rate in future. Indeed, making late payments can affect your score. But, by shifting all your loan accounts into a single one, you are more likely to get a high and good credit score. The excellent credit score lies between 750 to 850. Many licensed moneylenders in Singapore provide approval on loans if you have an average credit score.
Provide a Regular Fixed Payment Amount
Debt consolidation is counted as a cost-effective method as it can easily manage all your debts. No more worries because now you can manage your finances in a better way by paying off the same or fixed EMIs every month. It means you can save more money at the end of the month, plus your monthly expenses and bills won’t shock you anymore. It’s fixed payment amount will create a relaxed room for your monthly expenses. When you save more money through this, you can easily cover up your rest loan amount.
Low-Interest Rate and Time Saving
Usually, the unsecured loans are available with a high-interest rate. It implies that having high-cost debts may affect your savings and empty them, which further cause your long-term monthly financial goals. But, by dipping yourself into debt consolidation, you’re securing your finances because you’re paying off your instalments with low-interest rates. Hence, it won’t only improve your credit score but also allow you to save more instead of running in between larger amounts.
There is no doubt to say that a debt consolidation loan can make quick and convenient payments. It means you don’t have to visit the individual lender’s company to pay off all your taken out loans. You just have to make payment with a single licensed moneylender instead of attending many. This will initiate the process manageable for the borrower to trace all the repayments each month.
Improve Overall Lifestyle
The overall aim of the debt consolidation loan is to handle the repayment of multiple loans more flexibly. It is sufficiently a great option for reducing the stress or worries of paying off high-cost debts. Due to its simple and less troublesome repayment process, it’ll allow you to concentrate on spending time into other indispensable aspects of your life. This simplistic process and plan propose a comfortable way to handle your finances in a more manageable manner for the future.
Reduction of Stress
Handling multiple monthly repayments is frustrating, right? However, debt consolidation is a convenient option that can reverse everything and come to rescue to transform all your borrowed loans into a single one. Being relieved from stress will allow you to stay on top with a good credit score and a better financial position. Hence, protect yourself from the stress of managing increased monthly payments and interest rates to examine your finances.
Flexible Loan Tenure
Another benefit of owning a debt consolidation loan is – flexible payment duration or tenure. It allows you to choose a tractable loan tenure to secure and reach more manageable monthly repayments. There are a number of factors taken into a record like income, credit score, and loan amount in order to come up with a sensible payback plan when it comes to identifying the loan duration. The loan tenure of debt consolidation lies between 1 to 10 years. Having a short-term loan Singapore means you’re paying off a high-interest rate. The longer your loan duration, the lower your monthly EMIs. But additionally, a longer tenure also leads to paying off high-interest rates. If it’s easy to make higher monthly repayments, avoid long loan duration.
Easy to Manage Payment Deadlines
As discussed above, a debt consolidation loan can roll up all debts into a single one. It implies that you don’t have to worry about making multiple payments every month. Just one regular payment and resolve all financial problems. Merging all your obtained loan payments like credit card payments, renovation payments, medical bills or emergency repairs will reduce your total debt and reconstruct it so you can pay it off quickly. Now, you’ll no longer struggle with multiple monthly payment deadlines. Just keep an eye on one with fixed monthly repayments and pay off it more easily and efficiently.
Comprehending the advantages of debt consolidation loans empowers you to understand how to raise your credit score and how to overcome the inconvenience of multiple loans. There are a number of borrowers who are picking this strategy to restore their economics. If you also find yourself dealing with different debts and loans, a debt consolidation loan is a perfect choice for you. So, get rid of all your loans by converting them into a single monthly payment.
If you have any query regarding, you can contact our moneylender in Jurong East. They’ll always be there to help you and provide a reliable solution at every step.
Thanks for your precious time!