Discussing A Debt Consolidation Loan With 4 Pillars
One of the common options for people to resolve both secured and unsecured debt is to use a debt consolidation loan. While this may be an effective option for resolving debt, it is only through a customized, confidential assessment of your financial picture that a 4 Pillars debt consultant may make this recommendation.
Your 4 Pillars debt consultant will start by asking for information on your income and your expenses, as well as your current debt. This includes credit cards, student loans, car loans, mortgages, and other types of debt. The more information that clients can supply, the more information the debt consultant can use in proposing different recommendations.
Your Credit Score
A key factor in choosing a debt consolidation loan as a way to pay off debt is the ability to get the loan from a Victoria lender. Often people with large debt balances have poor credit, which makes it difficult, if not impossible, to get a loan at a low interest rate.
If the interest rate on the loan is not lower than the current interest rates on the debt, it is not something that the 4 Pillars debt consultant is likely to recommend.
Taking out a loan to pay off all current debts and leave one monthly payment only works if your current income level allows you to stay current and also cover the loan amount.
Failing to make a payment on a consolidation loan creates additional financial stress. People in Victoria need to carefully consider their financial status, develop a budget, and ensure they can make the loan payments until it is fully repaid.