In our fast-paced society, paying off debts and mortgages within a shorter period of time can make a huge impact on our financial freedom. Refinancing a mortgage or a debts consolidation loan not only saves you money but can also help you take charge of your finances more effectively. 

Before going through the process, it is important to understand how they work. Debts consolidation combines multiple debts, usually of high-interest credit card bills, into a fixed monthly payment and could effectively help you reduce your debts and pay them off at a lower interest rate. Refinancing your mortgage into a debts consolidation loan also combines your debts into one payment. Essentially, both can be great options to strengthen an individual or company’s finances as they usually offer better terms to pay off loans. Here’s how you can structure your finances intelligently with these loans.

Debts consolidation loan

Debts consolidation basically combines all of your existing loans into one. 

It can be a good option if:

  • You want to keep track of all your debts through a single channel and don’t want any payment surprises.
  • You have substantial high-interest debts and are struggling with monthly repayments.
  • You want to work towards paying off your existing loans in totality. A debts consolidation loan gives you an end date by which your loan would be paid off.

Mortgage refinancing

When you refinance a mortgage, you are replacing your current mortgage with a new one, typically with a different and better set of terms. It also consolidates your debts by combining your high-interest debts into this new mortgage, thus your new mortgage would consist of your original mortgage plus the non-mortgage debt. 

It can be a good option if:

  • You want to simplify your debts.
  • You have a fixed budget to limit non-mortgage debt in the future.
  • You want to shorten your mortgage length. Refinancing your mortgage can help you shorten your mortgage length and get the most for your home as it helps you to build equity faster, giving you more options for your home.
  • You want a lower interest rate every month.

The best money lender Ang Mo Kio offers

To consolidate your debt effectively, a licensed money lender can be just what you need, no matter your financial situation. The best moneylenders in Singapore offer competitive loans, under government regulations, with high approval rates and lower interest terms. You should consider choosing a licensed money lender you can trust as taking the first step to being debt-free starts with having the right financial partner who can offer you the best solutions.

Galaxy Credit Pte Ltd is a licensed money lender located conveniently in Ang Mo Kio. If you are looking for an accessible, fuss-free, and reliable financial partner, the best money lender Ang Mo Kio can offer is situated right here in the heart of this town. Galaxy Credit Pte Ltd is known for our vast array of specialised loans and our ability to cater to a variety of clients with customised loans for every need.

When used wisely, debts consolidation can be a great way to streamline and manage your finances. While it doesn’t mean that you are reducing the debt you owe, it does go a long way in giving you peace of mind when you put your debts together to make them more manageable. With lower interest rates and a single monthly payment to keep track of, you would be able to repay your debts faster and be in control of your money. 

Ready to take charge of your finances with a debts consolidation loan? Contact Galaxy Credit today and take the first step to be debt-free. Start now.