If you’ve ever been in a situation where you needed money that you didn’t have, you probably already know about loans and credit cards. Here is a brief Explanation on What both are:Loans A loan is a type of financial aid which must be repaid, normally with interest. Interest rates depend on
type of loan, length of loan and other relating factors. Loans are normally paid back over a set period of time where borrower will be responsible for paying back a certain amount of total debt each month.
Credit Card A credit card is a “card” whose holder has been given a revolving credit line by a financial institution. The card allows holder to make purchases and/or cash advances up to a pre-arranged limit. The credit amount used during any given month can be settled in full by end of a specified period or in part, with balance taken as extended credit. Interest may be charged on transaction amounts from date of each transaction or only on extended credit where credit granted has not been settled in full. Popular Credit Cards in use today are: Visa, Mastercard, American Express and Discovery.
We’re all quite familiar by now I’m sure with Credit Cards and Loans. What is Debt Consolidation though, how does it work? How can it help you?
Debt Consolidation It’s easy to become a borrower with Multiple loans, Most of which are unsecured - (not secured on property). It can be hard to manage all of these loans individually to eliminate debt which has grown as a result. Debt Consolidation is replacing these loans with a single loan secured on property. This can often reduce your (the borrowers) monthly outgoing interest payments by paying only one loan which is secured on property sometimes over a longer term. Because loan is secured, interest rate will generally be considerably lower.
