The stress of piling debt repayment and deadlines are some of the reasons why Singaporeans have had a strenuous time during this COVID-19 period. With many struggling during this difficult time, some lenders are also unwilling to make financial adjustments to their borrower’s payment schedule based on the current situation.
Worries of overdue payment and lingering debt can take a toll on many Singaporeans, who also have to concentrate on their daily work. One way to alleviate this stress is by obtaining a debt consolidation loan from a single licensed moneylender. A debt consolidation loan combines all of your current and remaining debt from different lenders and banking firms into a fixed monthly payment.
Here are 4 ways debt consolidation loans can benefit you during this COVID-19 period.
1. Lower Repayment Costs
With many different loans, repayments and debts, it can be difficult to keep track of them all. For a borrower, the best way you can do so is by obtaining a debt consolidation loan. Not only does it clear off all your debts from existing lenders and banks, but you will be able to pay back your monthly repayment fee at a lower cost to a single lender.
Similar to a monthly installment loan, lower repayment costs can be essential in helping you regain your financial freedom both in the short and long-term.
2. Lower Interest Rates
By clearing your debts and consolidating them into a monthly repayment, you will also be able to receive much lower interest rates. This might be due to your previous debts having inherently high-interest rates which can total up to a significant repayment each month.
With a debt consolidation loan, you will be able to afford monthly repayment fees with lower interest rates, aiding you towards a better financial future.
3. Reduces Stress
Stress can build up easily when you have too many debts and repayment deadlines to manage. A debt consolidation loan ensures that the stress can go away as quickly as it has built up by providing you with one loan repayment each month. This way, individuals can return to concentrating on their daily jobs and work without having to worry about the piling debt that they are struggling to repay.
Reducing stress is also crucial for individuals to regain their financial freedom.
4. Increase Your Credit Score
Your credit score is an important factor to restoring your financial freedom. This is because your credit score is calculated based on how often and timely you have paid your bills and debts in the past. Having a good credit score can help you in many aspects of your financial life, such as the total amount of loan you will receive, as well as being accepted or rejected for an instant loan.
A debt consolidation loan ensures that your monthly repayments are made on time, at a lower fee, with a lower interest rate. By regularly paying your bills and debts, you will be able to improve your credit score to a desirable rating.
Conclusion
Due to how challenging it can be during these times with COVID-19, being financially stable is important. A debt consolidation loan not only gives you the option to regain your financial freedom, but it also gives you peace of mind in your daily work. With an affordable monthly payment schedule to a single lender, you can return to your way of life and regain financial freedom during this difficult COVID-19 period.