It is natural for all of us to have a couple of loans that we need to pay off like mortgages, credit card dues and various bills. It is also not uncommon for us to forget to pay certain bills and exceed time lines for others. There are always a hundred things to do every month and you have to juggle the responsibilities of your office and home. With all these things on your mind you may not remember the due dates for some monthly payments.

Wouldn’t it be wonderful in this situation to have one consolidated amount you have to pay off? A debt consolidation loan offers you just this. A debt consolidation loan is one that merges all the small and big payments that you need to clear off while offering you a better rate of interest. When you have taken multiple loans or you have multiple dues to pay off, you often find yourself wondering which one needs to be cleared off first, the biggest one or the smallest. To clear off all these together effectively and have just one loan to pay off will be a blessing.

The six biggest advantages of a debt consolidation loan are:

1. Single payment: As mentioned before a single payment reduces the hassle of remembering to pay off various loans. You have just one deadline to remember and one loan to pay off. This could be your first biggest step to a debt-free future.

2. Lower interest rates: The interest rates on the debt consolidation loans are usually lower than the entire interest you might be paying on all your other bills and dues. Credit card dues attract one of the highest rates of interest and all this can be tackled effectively with a good debt consolidation loan.

3. Prevents bankruptcy: Filing for bankruptcy should always be the last choice as its implications are many. Hence it is better to take a debt consolidation loan and slowly pay off all the debts accumulated rather than filing for bankruptcy.

4. Saved from creditors: Creditors take it on themselves to really push people to pay their dues. They do this in the form of constant phone calls that can be annoying and sometimes embarrassing as well. To get away from the constant nagging by creditors the debt consolidation loan pays away all the dues so that you are relieved from the constant stress caused by creditors.

5. Credit scores: The debt consolidation loan helps you maintain better credit scores and these scores are very important to determine if you will be awarded a loan in the future.

6. Defined due dates and loan term: With a debt consolidation loan you have just one due date to remember within which you have to pay off the monthly interest. The loan term is also defined and you can plan your finances accordingly.

The debt consolidation loan has become a blessing for many people as it facilitates easy payments and you are on the right track to a debt-free future.

Author Bio: Article written by Svilen Andreev, Founder of Smart Debt Solutions, Inc. For more specific information about credit debt consolidation loans or just for general information about debt consolidation check out his website at http://www.smart-debt-solutions.com

Category: Finances
Keywords: credit debt consolidation loan,debt consolidation loan,debt consolidation