Fix Your Personal Debt With A Consolidation Loan

A Personal debt consolidation loan can help you manage through financial difficulties or free up additional money in your budget to save, reduce debt or spend.

Reduce Monthly Payments

If you have multiple consumer loans, consolidating them can be a way of reducing the amount you pay each month. If interest rates are lower now than when you took out existing loans, or if you extend the time in which you are repaying loans, a personal debt consolidation loan can reduce your monthly payments. It is a single new loan that pays off your old loans and can result in savings.

Be aware, you have not reduced your loan amount. You have only reduced the total interest you pay.

Freeing Funds for Other Uses

Among the real benefits of a personal debt consolidation loan is that a reduced total monthly payment frees money up in your budget for other purposes. Many people reduce other debt - such as credit card debt - with the additional money. You can also save or invest it and put the money to work for you. You will get even more benefit if you invest the extra money in a tax-differed account for retirement. Finally, the additional money in your monthly budget can go toward immediate personal needs.

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