There are actually three different kinds of Debt Consolidation Loans. Each type is specifically designed to meet a different need. If you're considering debt consolidation, the first thing you need to determine is what results you want.
1. The first type is Debt Consolidation for Lower Monthly Payments. Unless you're a careful manager, you can in over your head with credit card payments without even realizing it. You start with one card, make some purchases with it, and you start paying it off on a monthly basis. Then you get another card, do the same, and start paying that one off at so much a month. Before you know it, several "so much a months" have added up to a very large ammount you can no longer afford, or struggle to pay each month.
One of the ways debt consolidation can benefit you is by taking all those monthly payments and consolidating them into a single monthly payment that you can afford. It does this by stretching out the terms of the loan. In other words, you'll take a bit longer to pay off the total amount. But if you're interested in this kind of debt consolidation, the peace of mind you get from knowing you can live within your budget is worth it.
However, you must be aware of debt consolidation schemes that offer you lower payments, but a higher rate of interest than you're paying now. You'll be forever paying off the loan and you'll pay a huge amount of interest, as well. At Ocean Pacific Capital, we will meet with you at your home, office, or any convenient location to present a free personalized analysis of your situation. Whether you decide to consolidate or not, you will come out of the meeting knowing exactly what your interest rate will be, how much you will be saving, and how long it will take you to pay off the loan. We'll provide you with a free credit report and you can ask our friendly loan officer any questions you might have about the refinancing process.
2. The second type is Debt Consolidation for Savings on Interest. If you're a typical American, you're probablly carrying a balance on two or more of your credit cards, possibly at an interest rate of something between 15 and 22 per cent. As a result, a large chunk of your monthly payment is going into paying off the interest, rather than the principal of the loan. Unless you increase the amount you pay each month, it's going to take a long time to pay off those cards. Depending on how long you take to pay off the debt, the total amount of interest you pay could add considerably to the price of whatever you bought with the card in the first place, or even double it.
The solution to saving money on interest is a low-interest Debt Consolidation Loan. If you continue to pay the same amount you're paying now on a concolidated low-interest loan, you can pay back the debt faster because you're now paying down more principle. At Ocean Pacific Capital we have access to over 130 different lenders. This means lenders compete for your business and we'll find you the lowest rate debt consolidation loan possible for your situation.
3. The third type is Debt Consolidation to be Debt-Free Fast. This type of loan allows you to quickly pay off your debts so you can be debt-free. To accomplish this, you need to be able to have the cash flow necessary to increase the amount money you pay off each month. You could accomplish this by just adding a few dollars to each of those checks you write to your creditors every month. But to really cash in on the savings you can accrue, look for a debt consolidation loan that is low-interest and short-term. By decreasing the overall interest rate on the money you owe, you end up paying off less money in the end, especially if you're prepared to make larger payments so you can pay it off fast.
Now that you know what kind of Debt Consolidation Loan you want, it's time to act. Ocean Pacific Capital has access to over 130 lenders which ammounts to thousands of different loan programs. There's bound to be one that's perfect for your unique situation. It's easy to apply for a Debt Consolidation Loan. Use our online loan application for a free consultation, or call us toll-free at 1-800-595-1474.