Debt Consolidation Plan
by: iAppodium • 0
Debt consolidation allows you to pay down the principles of your lending obligations faster, and it offers you means to salvage fair to low credit scores in preparation for a major purchase, such as a new home.
After all, when you're knee deep in debt and your credit rating is less than ideal, home mortgage lenders will charge premium interest on the money they provide for you, after debt consolidation, however, you can apply with your newly salvaged credit and thus get lower term rates. This in turn will save you tens of thousands of dollars (potentially) over the term of your mortgage in reduced interest payments alone.
Debt consolidation also will benefit you psychologically. When you're putting out multiple ?debt fires,? you must juggle a slate of interest rates, terms, and potentially even threats from creditors. When you have just one or two monthly bills to pay, you can budget easier, and you avoid wasting grueling hours calculating out the consequences of different interest rates. Furthermore, debt consolidation costs may be tax deductible, see your accountant about potential implications for moving your money around.