A debt consolidation loan is a loan made to consolidate your debts. This solution consists in replacing your commitments into one loan renegotiated with better conditions. With a debt consolidation loan, it is possible to regroup:
Once the debt consolidation loan done, you pay only one bill, but also you save money, as the new loan will benefit from a lower rate, and sometimes a longer repayment period. Thus, it is possible to save up to 40% on your bills with this solution.
From a practical point of view, a debt condolidation loan is considered the same as a personal loan. Thus, the conditions are the same:
Mr Dubois wishes to consolidate two commitments:
With a debt consolidation loan, Mr Dubois groups his loan and the amount of his credit card into one new loan of 13,000 CHF. He choose a 2 years duration, and gets a 7.9% rate. His new monthly payment will be only 585 Chf!
The best is to call a specialized agency or advisor. Indeed, it is important to ask an experienced interlocutor in order to get a low interest rate and the best conditions possible. CreditLoan, an organization that specializes in loans and debt consolidation loans, can help you to get a free non-binding offer!