The opportunity to better manage your finances

Loan consolidation is an effective option for anyone seeking a solution, no matter how big or small their debt amount is; secure a lower interest rate, secure a fixed interest rate, or consolidate debt for the benefit of servicing just one loan versus several. A loan consolidation allows a debt-ridden borrower to all of their debts into one single loan. This type of debt relief gives a person in debt the opportunity to better manage their finances by concentrating it into one place, instead of juggling several loans at once, each with different interest rates, terms of payment and payment amounts.

To counter these factors, a traditional loan consolidation will offer lower interest, resulting in lower payments for the borrower to get their debt under control more quickly. Here, borrower works with a new lender who takes over the new loan from previous lenders. Credit card debt consolidation is one example of how a person can turn around their financial situation. If you’re in debt on two or three credit cards, each of which comes from a different credit provider, carries different interest rates, and has varying payment terms, credit debt consolidation involves grouping all those debts into one of many loan consolidation programs on the market, allowing the consumer to pay off the total debt at more reasonable terms and rates.

Taking into account your lending options for a loan consolidation is an important step to eliminating financial problems. However, before taking out a new, consolidated loan, there are other ways to free you from the debt and prevent it from happening again. Start work with your creditors. Ask if your credit card company or mortgage provider be willing to draft an amended payment plan for you. Look out for your finances in advance. Change your money habits. Consolidate the way you spend before needing to loan consolidation to consolidate your debt. Devise a budget, cut back on expenses where you can, and get out of debt before it starts.

Make sure that you understand the financial impact

Before you start to consolidate your debts, you need to make sure that you truly understand the financial impact of loan consolidation. There are numerous companies offering various types of loan, and even overall debt consolidation as the one size fits all fix to every debtor’s worries. Student loan consolidation is being offered as the quick and easy solution to all student debt-related problems.

Granted, consolidating your loans can be a quick fix to a number of complicated problems, especially when it comes to student loans. This act can quickly transform your student debt from a confusing mess of loans with multiple lenders, interest rates and loan types into one big loan with one interest rate and one monthly payment. Before anyone considers consolidating any kind of debt, they need to know what they are getting into. Loan consolidation can produce excellent benefits on the right borrowers’ financial portfolio, but it can also wreak long-term havoc on the wrong borrowers’ financial portfolio, as well.

When you have many differing loans with different lenders, you likely have different interest rates as well. Having these debts separate allows you the freedom to send greater amounts of money to the higher rate loans. This will help you pay down your debt faster, and result in a reduced amount of interest paid over the life of the student loans. Loan consolidation has different qualifications for certain repayment options. Keeping your loans separate for the appropriate time frame can provide greater flexibility in your repayment assistance.

What options are for loan repayment

Loan consolidation for students have recently a hot topic in the news as interest rates doubled this month due to failing efforts from Congress to hold financial-aid rates down for future borrowers. Meanwhile, those struggling to find jobs that can support their post-college student aid, which is borrowed for the sake of higher education, are now wondering what their options are for loan repayment.

National Student Loan Relief – NSLR works directly with the Department of Education to offer Federal Student Loan Consolidation programs. Borrowers who hold multiple federal loans can combine those debts and pay just one monthly payment. Extended terms can also mean lowering one’s monthly payment. Private loans cannot be consolidated with federal loans. NSLR also works with the Department of Ed to enroll eligible borrowers in Student Loan Forgiveness and Teacher Loan Forgiveness programs.

NSLR works with thousands of borrowers to help them get into a program that will give them student loan relief and create a more financially feasible situation. National Student Loan Relief has years of experience with client services, financial services, loan counseling, process management and document processing and is in the business of helping student borrowers consolidate their debt and get a handle on their monthly payments.

Debt remains the same all throughout loan

Layman’s terms describe a consolidation loan as a financial situation with the intention of taking out one loan to pay several other debts. Instead of having to pay multiple separate payments per month, a borrower can consolidate his cash into one payment. This is often done to secure a lower fixed interest rate over the course of the loan term.

Consolidation companies use the loan proceeds to pay off your existing debts, allowing you to pay one loan at a specific interest rate each month instead of trying to meet multiple obligations all month long. Often, consolidation offer better rates than many other types of consumer debts, meaning you can save money. However, there are disadvantages to securing a consolidation loan. While a borrower can still experience lower interest rates and payments due to the term being amortized over a longer period of time, the debt remains the same all throughout loan, with the main difference being that loan term has been extended.

Before taking on a debt consolidation loan, borrowers may want to consider using a debt consolidation calculator. These useful tools can help determine many factors for many financial situations, such as how long will it take to get out of debt, or how much interest can be saved if you get fixed interest rates. This can save you the time crunching up the numbers yourself and preventing unwelcome surprises in the future.

Platform that can reduce borrowing costs

Many small business owners are seeking debt consolidation and small business loan refinancing options, mistakenly believing that consolidation can save them money and fees. This highlights a troubling trend of many small business owners blindly entering into loan agreements with fixed interest payments and poor terms.

As a lender, QuarterSpot cautions all business owners to first research their current contract to understand the financial implications of a business loan refinancing. For those seeking a refinance of a fixed interest loan, QuarterSpot recommends that they continue to pay on their current debts for the duration of the term, and seek out a separate loan if they are in need of additional capital.

QuarterSpot provides business owners with a better source of funds through an automated underwriting platform that can reduce borrowing costs by as much as 85% when compared to traditional lenders. Further, QuarterSpot does not require small business owners to provide personal loan guarantees. Borrowers can apply for a loan in five minutes or less and receive funding in as little as 24 hours. QuarterSpot is committed to helping small business owners secure responsible small business loans that are clearly explained and fairly priced.