The accumulation of different loans, and the different benefits paid as a result, often lead to situations of great over-indebtedness on the part of the families. Consolidating credits is a solution that many people are unaware of for this problem.
It is not uncommon for debts in previous loans whose installments occupy almost all family income, leaving people on the brink of financial despair. But did you know that by consolidating credits, you can reduce your tuition by almost 60%? And you know how? Not? We explain.
Consolidate credits, increase the term and decrease the monthly payment
Number one way to pay a lower monthly fee. Imagine that, due to the vicissitudes of life, you have to contract several credits (a car loan , a personal loan and some other debts on a credit card).
However, these debts have resulted in the accumulation of several installments that it is now failing to cope with. But how does consolidating credits in practice lead to a decrease in the amount payable per month?
Is easy. Imagine that the credits you have to pay have, on average, a period of 48 months. What you will do is to take out a longer-term consolidated loan (for example, 96 months). So, despite getting to pay off the loan for longer, you also pay less per month. And so you get the much-desired financial slack.
And you knew you could consolidate credits and lower the rate you paid?
There is yet another way to pay less per month while consolidating credits. Let’s do the following exercise: imagine you contracted debts on three credit cards with an average APR of 18%.
In order to mitigate the installments payable under that loan, it may incur a consolidated credit with an APR of less than that amount. And so it is already saving some per month. The good news? All the credits consolidated in our platform have lower interest rates than these.