What is a Debt Consolidation Loan and What are its Benefits?

1. What is a Debt Consolidation Loan and What are its Benefits? If you are looking for ways to clear your debts and struggling with payments to more than one lender, then you might want to consider a debt consolidation loan! A debt consolidation loan doesn’t reduce your debt. The amount to be paid remains the same but instead of paying several lenders at once, your debt becomes one manageable monthly payment to a single lender. The debt consolidation loan will pay off the existing debts and you will be left with a single payment which is to be made to the debt consolidation loan service provider. There are several services for debt consolidation loans in Singapore but you need to be really careful when choosing their services. Here’s a look at some of the major benefits of the debt consolidation loan: 1. A single payment One of the biggest benefits of a debt consolidation loan is that you just need to make one single payment for your debts every month. Most of us have multiple credit accounts and credit cards for payment of debts and bills. With a debt consolidation loan, you can consolidate everything into one source. You need not worry about different deadlines for different payments. 2. Reduces stress When you consolidate all the debts into one account, you will significantly reduce your stress levels. Being constantly bothered about various debts will affect your productivity in all other areas of your life. Sometimes debt woes may also impact your physical and mental health. If you are in debt to a number of debtors, then it is advisable to take this loan and start paying it back to the bank / lender in more manageable instalments. 3. Get rid of collection calls When you have huge debts or unpaid bills, you will likely receive collection calls from the concerned parties all day long. With the help of a debt consolidation loan in Singapore, you can pay off the outstanding amount and eliminate these calls altogether. 4. Lower interest rates In the case of non-payment of the debts and bills, you will be charged with unreasonable interest rates. A debt consolidation loan will help in saving your money by helping you to get rid of your previous debts at lower interest rates. Ask about the prevailing rates and get quotes from various money lenders to choose the one that matches your requirements and is ready to provide you funds quickly. Now, that we have learnt about debt consolidation loans, let’s have a look at another common scenario that Singapore often witnesses. In Singapore, foreigners may run short of money or they may need funds immediately for setting up a new business. That’s when the foreigner loan in Singapore comes into the picture. Usually, the foreigner loans are for a shorter duration with a higher rate of interest but

2. you can explore the web for more information on the foreigner loan in Singapore, how to apply for it, and the terms and conditions for repayment.