Many people decide to apply for several loans to ensure the payment of various costly activities, such as buying a house or a motor vehicle and preparing for a wedding. However, managing the repayment of different loans is not the simplest situation and sometimes leads to many inconveniences. Fortunately, there is a much more advantageous solution: credit consolidation.
What are the disadvantages of having multiple loans?
Having different loans means multiple interlocutors and, inevitably, various contracts to sign; not to mention several premiums to pay monthly. Consequently, managing these different administrative elements can often be complicated. Moreover, the accumulation of various premiums can quickly constitute a very high amount, sometimes difficult to pay.
What is revolving credit?
Linked to a credit card, revolving credit constitutes a cash reserve whose amount varies depending on the cardholder and their needs. This type of loan is repaid based on the amount spent using this card.
At first glance, this borrowing technique seems advantageous and interesting. Unfortunately, it often proves to be quite misleading. Indeed, managing your money properly becomes more difficult as it is possible to spend a lot. Repaying the multiple monthly payments, which are sometimes very costly, can therefore be burdensome.
Why opt for credit consolidation?
Credit consolidation offers many significant advantages! With a single contract and interlocutor, your administrative management becomes much simpler. Moreover, you only have to pay one premium per month, which is lower compared to the sum of several loans. Indeed, these loans can be consolidated into a single mortgage, provided there was already one. Another alternative is to establish an installment loan with the various credits. The amount to be paid becomes larger, the interest rates are lower, and the monthly payment is less expensive.
