Kingcade Garcia McMaken
Set Up a FREE In-Office Consultation
305-285-9100
Open Every Saturday Morning 8 AM to 11 AM.

Should you consider a consolidation loan?

You know that you can't stay in debt forever, because the strain that you're dealing with is becoming overwhelming. You've worked hard to get where you are today, but a combination of lost hours at work and large, financed purchases have put your behind on what you owe.

Today, you're looking into debt-relief options. One in particular, consolidation, seems like a good idea to you, but is it? Before you choose consolidation, consider the pros and cons carefully. Here are a few things that you should know.

1. Consolidation groups your bills into one loan, which may or may not have a lower interest rate

The first thing to look at is the interest rate on a new loan. If it's significantly lower than your current interest rate average, then the new consolidation may be worth a try.

2. Combining your debts might not lower your payments

Combining your debts might not be enough to lower your payments, but it's possible. If you can, add up the new loan amount and monthly payments to see how much you're going to save. There is usually a fee for opening the new loan, too, so you'll want to consider that when deciding if you're going to save money with a consolidation loan.

3. Zero-interest loans can be tricky, so pay attention

Finally, if you have found a zero-interest loan, take a minute to make sure you have enough time to pay off what you'll owe. If you can't pay the loan off in full by the time the introductory period ends, you'll end up paying all the interest you could have saved.

These are a few things to consider if you've been looking at consolidation loans. They could be a good option, but you must be cautious.

No Comments

Leave a comment
Comment Information

Set Up A Free, In-Office Consultation

Open Every Saturday Morning 8 AM to 11 AM.

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

EMAIL US FOR A RESPONSE

Firm Location

Kingcade Garcia McMaken
1370 CORAL WAY
Miami, FL 33145

Miami Law Office

Firm Number Phone: 305-285-9100
Review Us