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Personal loans for debt consolidation at a lower rate

Personal loans are currently on the rise. This explosive growth is attributed to the proliferation of online lenders. Thus, the application process has become fast and easy without excessive paperwork and with strict security measures. The personal loans for debt consolidation usually need to be paid back within three to five years. TriceLoans as one of the leading online lenders offers you a smart way to consolidate debt or refinance a credit card with a reasonable interest rate. Still, you should be careful with the amount you are taking and the reason for borrowing money, as with all debts. To know more about personal loans, keep reading.

Process of Getting a Debt Consolidation Loan

You can get debt consolidation loans at different places such as banks, credit agencies, online lenders. It is crucial to have a clear understanding of the concept of debt refinancing. Especially, consider the fact that these loans don’t eliminate the eligibility of debts. Such companies as TriceLoans restructure the debt in a smart way, but it doesn’t mean that you don’t have to pay back what you have taken. Here are the major benefits you may expect from debt consolidation loans:

  • It saves you money. If you have more than one credit card featuring double-digit interest rates, you apply for debt consolidation at a reasonable rate. Thus, you can save a lot of money in interest and service charges.
  • It simplifies your finances. Debt refinancing can be viewed as a combination of numerous debts within a single monthly payment. The loans are marked with fixed rates and a clearly-determined repayment term so that your monthly payments remain unchanged. Also, you will know when the debt will need to be paid off. Credit card rates may vary, so your monthly payments will differ as well, depending on your balance. At the same time, it is hard to know exactly when monthly payments will be paid off.
  • No collateral is needed. Credit consolidation loans are not considered unsecured, so you don’t have to provide an asset, such as your flat or car.
  • It can increase your credit score.

If you try to compare different lenders operating on the local market, you need to pay attention to the total cost of borrowing. Then, you need to compare that to your current costs before confirming a final debt consolidation. If you haven’t decreased your monthly payment and interest rate, debt refinancing can hardly be the right action. In fact, debt consolidation loans can be viewed as an analog of personal loans. Thus, they are also represented by two types – secured and unsecured. A secured debt consolidation loan similar to a secured personal loan is supported by collateral such as a flat, car, or any other property. This is probably the easiest way of consolidation. Unsecured loans are supported only by the borrower's intention to pay off. If you are ready to stick to the unsecured loan route, consider TriceLoans for the next step.

Considerations before Debt Refinancing

Debt consolidation can be used to turn debt repayment into a more simple procedure.  It's crucial to understand any related costs or charges with debt refinancing mechanisms. Most importantly, you can get into debt in the first place and proceed with a plan to pay off your debt later on. If you don't follow a strategy, these mechanisms could mean receiving even more debt.

While unsecured debts take over 40% of your income, a debt consolidation personal loan is a reasonable solution. You as a decent candidate are a borrower who has a stable income, reasonable credit and an intention to pay off what is taken. A lender will check your credit background, income and your debt-to-income rate to make sure you have been a loyal borrower and have the means to pay off the loan up to the deadline. Before you apply for a loan, a copy of your credit background needs to be provided. Credit score requirements vary may vary from one lender t another, but most lenders want a borrower with a FICO rate not less than 670. Your task is to find the company with the most attractive conditions. The debt consolidation company like TriceLoans doesn’t cooperate with consumers with tainted credit so that you will most likely be disqualified.

Closing Note

What is good about TriceLoans is that it provides debt management, namely a program of non-profit credit counseling. Thus, you can make your life easier by eliminating a debt within 3 to 5 years. By working with the credit cards company, you can minimize the interest on your card debt so you can afford that monthly charge. Credit scores are not an aspect of debt management programs. Remember that this is not a loan, but rather a monthly payout that let you get rid of debt. As you can see, it is a fast and easy procedure that makes your financial state more stable.