Sooner or later, just about everyone needs some help to get their debt under control. Maybe you are the victim of an unexpected layoff. Maybe your house catches on fire, or it is hit by a storm. Or maybe you, your spouse, or someone else in your family gets sick.
Debt consolidation is a great way to get control back over your financial life. But how do you get the best deal?
First, Understand What a Debt Consolidation Loan Is
The financial educators at Symple Lending usually start by explaining the benefits of consolidating your debts into a single account.
Debt consolidation loans reduce the amount you pay every month on repaying your debts. They can get you out from under continuing late payment fees, and help you lower your interest rates. They help you pay down your debt faster.
The financial experts at Symple Lending always urge customers to seek help before they are months behind in their payments or seriously considering bankruptcy. Your best chances for getting a consolidation loan are when your credit score is above 660.
The lower your credit score, the harder it will be to get a consolidation loan, and the higher your interest rate will be. Even when you stop the steady decline of your credit score with your consolidation from a company like Symple Lending, you will still need to make your payments on time to keep up your credit, and to renew your loan.
How to Get the Best Deal on Your Debt Consolidation
Symple Lending has another piece of advice for debt consolidation customers.
Don’t jump at the first offer you get.
Always seek a second offer from a second lender.
There are unscrupulous companies that prey on naive borrowers. There are debt consolidation lenders who want to keep you in debt forever, so they don’t offer any kind of financial education.
Here are some red flags that signal that your offer is coming from a shady lender.
- The company contacts you before you contact them. This is a sign they are vultures circling your credit. Unsolicited debt consolidation loans usually come with very high interest rates.
- The company is offering debt settlement, not debt consolidation. Your credit score takes a hit comparable to declaring bankruptcy the same day you take that kind of loan.
- A variation of the debt settlement scam is debt reduction. With a consolidation loan, you repay your creditors in full. You just get longer to do it.
- The company claims it can get you access to a special government program. The only special government program for most debtors is bankruptcy, which will ruin your credit.
- The company tells you that you can stop paying your bills. You can pay your bills off once you get a consolidation loan, but you must continue making monthly payments until you do.
- You are told not to communicate with your creditors.
- The company says they are making a limited-time offer.
Stick to reputable lenders verified by the BBB and TrustPilot, like Symple. Symple can help you find a debt consolidation loan at the best available interest rate with the biggest boost to your credit.
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