If you have a lot of credit cards and other debt, then a debt consolidation loan may be something worth considering. This will allow to consolidate all your other borrowing into a single monthly payment. You do need to be strict with yourself and not continue to use your credit cards after they have been paid off, or you will find yourself in the same position again. There are a number of benefits to taking out a debt consolidation loan if it is used correctly.
If you are only making the minimum payments on your credit cards, then it may take many years to pay off the balance in full. When you take out a debt consolidation loan, you will know exactly how long it will take you to repay the money you have borrowed. You will find that different loans have different repayment terms but generally speaking the higher the monthly payment, the shorter the period that the loan will be over.
Paying the minimum payment each month will also increase the amount of interest that you pay, as most of your payment will just cover the interest, meaning your balance will barely decrease. Although you will pay interest on a debt consolidation loan, it is likely to be far less than if you continued to pay your debts off on a monthly basis. This could potentially save you thousands of pounds in interest, especially if you have more than one debt that you want to pay off.
There are certain things that you will need to take into consideration before applying for a debt consolidation loan. You should do some research into the loans that are available to you so that you can find the one that offers the best rates. If you make a lot of applications for loans in a short space of time, then this may have an adverse effect on your credit rating. Therefore it is a good idea to do some research and find a flexi loan from a Singapore licensed moneylender that you are likely to be accepted for, and then you should only have to make the one application.