Struggling to pay off multiple loans? Here’s how a debt consolidation loan can help
From car loans to home loans, study loans to credit card bills and emergency expenditures. As one’s commitments grow, so do their list of financial worries and loans. Do you find yourself struggling financially to pay off a seemingly never-ending and intimidating amount of debts? Even with proper financial planning, unforeseen circumstances can occur and lead to a sudden downturn in our cash funds, resulting in people turning to take out several loans at a time. Some people may find themselves burdened with multiple debts in times of emergency.
Multiple debts can lead to bigger problems, one of it being the snowballing interest rates if you are unable to pay off your loans on time. This not only leads to financial stress but psychological stress as well. An increasing amount of debts can be very intimidating and it can be devastating to be stuck in a cycle of debt for years on end. However, there is actually a viable solution to help you manage this and take control of your finances.
When there are too many loans from different authorised money lenders, financial institutions, credit cards and expenditures, it can get confusing to track especially with the different interest rates and late payment fees from the different sources. To put an end to your debt worries, Galaxy Credit is here to help with our debt consolidation loans.
What is a debt consolidation loan?
A debt consolidation loan is a low-interest consolidated plan designed to lessen your financial burden by combining all your debts and personal loans into a single, fixed monthly repayment loan. It is particularly beneficial especially if you have high-interest rate debts. Consolidating your debts this way allows you to lower your monthly repayment and makes it more affordable for you to pay your bills through a single payment.
Types of debt consolidation loans
There are generally two types of debt consolidation loans – secured and unsecured. The borrower’s assets such as a house or a car usually back secured loans. The assets, in turn, work as collateral for the loans.
On the other hand, unsecured loans are not backed by any assets and collateral. At Galaxy Credit, we offer unsecured debt consolidation loans with lower interest rates* and up to 6x your monthly salary*.
With either type of loan, the interest rates are typically lower than those of credit cards. The rates are also fixed, so they do not vary over the repayment period, which makes it more affordable for most people to repay their loans.
With a debt consolidation loan, you can focus on paying off a single loan with a fixed tenure and a peace of mind.
5 benefits of a debt consolidation loan
Similar to a personal loan, a debt consolidation loan helps you focus on repaying all of your debts in a single loan. No more fussing over different interest rates, late payment and hidden fees. No more trying to keep up with different payment dates and terms. With a single debt consolidation loan, you can take control of your finances and start clearing your debts with ease.
Here are 5 benefits of taking out a debt consolidation loan with Galaxy Credit.
A debt consolidation loan can help you with cash savings, as the interest rate is lower. In the long run, it can potentially help you enjoy bigger savings on your monthly repayments as compared to paying off different loans with varying amounts in interest rates. These monthly savings, albeit small, can help you recover from your financially stressful situation, slowly but surely.
With a reliable debt consolidation loan in place, you will be able to pay off your bills in totality with an end date in sight. A debt-free life is a good life. When you have a date to work towards to pay off your loans, it is an effective and safe way to keep your finances in check and help you focus on paying off your loans diligently every month.
If you have incurred huge penalties from defaulting on your previous loans, it can cost you a substantial amount of hundreds and thousands of dollars, and worse still, it can affect your credit score negatively. With a debt consolidation loan, all of your existing debts are merged into a single loan, which helps you focus on paying that one loan, thus reducing the likelihood of defaulting. This will also reduce penalties that would have been incurred if you had multiple loans to pay off.
At Galaxy Credit, we offer a flexible debt consolidation loan that can be repaid up to 12 months. This is subject to approval and depends on each borrower’s loan amount and ability to repay the loan. When taking out a debt consolidation loan, it is important to consider a plan that allows you to repay the loan within your means and should not affect your daily expenses. The goal is to help you repay your debt over a fixed period of time, resulting in a total payoff while not taking out new loans in the meantime.
After taking out a debt consolidation loan, you would be able to start rebuilding your credit score if your previous defaulted debts have affected your credit score negatively. You can rebuild your credit score by repaying your new consolidated loan consistently and promptly. An improved credit score can help you access more credits and funds more easily in the future, especially for big-ticket purchases such as houses, cars and even business ventures.
Take charge of your finances and pay off multiple high interest rate loans all in a single loan with Galaxy Credit’s debt consolidation loan today. Enjoy lower interest rates and flexible monthly repayment schemes. Your first step to financial freedom is in the little things you do to set your credit right. Galaxy Credit is here to help you on this journey, one affordable loan at a time.
