Debt Consolidation: A Better Alternative
Today, incurring debts has become quite normal for just about anyone. Even those who are more affluent also have their own debts, though the reason for such may not be just emergency need for cash. However, the truth remains that a lot of people have been driven to borrow money from banks and other lending companies for the many reasons they have.
With the current economic crisis, it has become more difficult for people to pay their dues. Considering the diminishing value of money, coupled with the never-ending bills to pay, every single person fears to be buried deeper into the debt holes they are already in. That is why the best alternative seen for this is debt consolidation.
Debt consolidation is taking the debt with the highest interest and consolidating this into one bigger loan with lower interest rates and even better loans. For example, if one has five smaller loans, the individual will have to get a larger loan to pay for these smaller ones and just pay the interest and the principal amount from the larger loan. If we really look at it, debt consolidation will not actually reduce one’s debt but will only make it easier for the individual to pay just one loan.
Despite this, debt consolidation still proves to be the best option one can have to not have fear of getting more debts.
Here are some important reasons why it is still recommended.
1. It has lower interest rates. Everyone is aware of how much credit cards charge for their fees. By getting a consolidated loan, the interest is much lower plus there are also better terms which are advantageous to the borrower. Furthermore, each of the interest rates of the many debts one has will be many times bigger than the single interest rate of a consolidated loan.
2. It can be managed easily. Compared to having to take not of all the deadlines and dues of the many loans one has, it is always easier and more convenient to manage a single loan; that is, having to just remember one due date.
3. Fixed interest rate. With debt consolidation, one is assured that the interest rate is fixed. It will not change within the terms of paying the debt. As compared to credit card interest rates, these may change every now and then, depending on the terms of the card provider.
Cash Advance is the best source for cash to pay off debts
Cash Advance is Australia’s top loans provider. When an Australian has the need for cash to pay off some debts, it is always ready to help provided the applicant meets all of the simple requirements it has. For one, the applicant should be aged 18 years or older at the time of application. Also, he should be employed to ensure that he can pay off the debt by next payday; thus, the name, “payday cash loans”. Thirdly, he should also have an active checking account where the borrowed money will have to be wired upon approval.
Though Cash Advance always does a credit check, a high chance of approval is still possible even if the person has been found to have a credit default.