In Victoria, consumers can turn to a 4 Pillars debt consultant to obtain recommendations on how to manage their debt problems. This can include developing options to manage credit card debt, stop home foreclosure, or manage other types of debts such as car loans or student loans.
In many cases, individuals and families working with a 4 Pillars debt consultant have options to consider to manage their debt. The debt consultant can provide education and information on all the applicable options, with the consumer making the final decision on the best strategy to use.
The Basics of a Consolidation Loan
One possible recommendation from a 4 Pillars debt consultant may be a consolidation loan. This is large loan that is used to pay off smaller debt, leaving the consumer with one monthly payment.
There are several reasons why the consolidation loan may be the right option. These include:
• Lower interest rate – for consumers with a good credit score, a lower interest rate on the loan helps to reduce the final repayment of the debt
• One payment – one payment a month is easier to budget and to manage than multiple minimum payments that may be overlooked in error
• Eliminate penalties and fees – paying off high interest credit with the loan eliminates the addition of fines, interest, and penalties on the debt
• Starts building your credit – successfully managing the consolidation loan starts to rebuild your credit while repaying the debt
A consolidation loan is not the best option for all consumers in the Victoria area. Working with an experienced debt consultant is the best way to determine your options and make the decision that works for you.