Not everyone has the money to satisfy their needs and demands, so they rely on loans. And taking a loan is a sensible choice and the process, more often than not, proceeds smoothly. However, in some cases, the person is not able to repay the loan. Before he can think of something, he finds himself trapped in the quagmire of debt.
So, the question is – if such a situation comes what can be done? You have some options, one of which is a debt consolidation loan. If you have heard of it before, alright. But if not, nothing to worry about.
Understanding debt consolidation
Debt consolidation refers to a situation when you take out an additional loan to repay other smaller debts or loans. It merges many bills into a single one. It includes credit card balances, student debt, home loans, auto loans, or other personal loans. The primary aim of debt consolidation is to repay everything you owe efficiently. It reduces the damage to your credit score.
Debt consolidation lowers the interest rates and the monthly payments. It enables the borrowers to avoid the mess they have to face every month to keep up with numerous bills and deadlines from different card companies.
When is debt consolidation a smart move?
If you have been considering taking debt consolidation Singapore for quite some time now, you should be aware of when it is a good move. Here are some situations:
- Your monthly debt payments are 50% or less of your monthly income.
- You have good credit such that you can easily get a debt consolidation loan on 0% interest or low interest.
- You can pay the consolidation loan within 5 years.
For most people, consolidation is a ray of light at the end of a long tunnel.
Applying for a debt consolidation loan
As with any other kind of loan, you have multiple options with debt consolidation Singapore also. But the right platform makes the process so much smoother for you. With Lendela, you get a debt consolidation loan in Singapore in just 4 breezy steps, which are:
- Apply with Lendela
- Receive offers from numerous banks
- Compare the offers and select the one that suits your needs the best
- Sign the agreement with the bank and get your loan
Now, wasn’t that simple? The loan process is made simpler, quicker, and more transparent in this manner. Lendela empowers hundreds and thousands of Singaporeans who seek consolidation every month.
