Consolidated credit to combine debts: What are the advantages?
Adding different debts into a single credit is possible, simplifying payment and paying less overall. Understand all the advantages of this financing.
What are the advantages of combining debts into a consolidated credit?
Do you know what consolidated credit is? This is a financial solution that allows you to consolidate several debts, such as personal loans, credit cards, and other loans, into a single financing with a single monthly payment.
The goal is to simplify personal finance management and alleviate monthly burdens, through more advantageous conditions such as lower interest rates and longer payment terms.
Let us then see all the advantages of hiring a personal loan:
- Lower interest rates
As a rule, consolidated credit allows access to lower interest rates applied to other credits, such as credit cards or small consumer debts. This can result in significant long-term savings.
- Extended payment deadlines.
Consolidating several credits allows for a longer payment term, reducing the monthly installments to be paid. Although in the long run, this will mean paying more interest, it is a good option for those who need to reduce expenses in the short term.
- Reduce the monthly burden of debts.
These conditions will allow you to pay significantly less for various debts. The single monthly installment that you will have to pay for the credits will be lower.
- Better management with a single debt
Combining credits into one makes management simpler, only having to deal with one debt. It also reduces the risk of forgetting any payment.
- Reduced effort rate
By reducing the amount you pay monthly in installments, your effort rate (percentage of monthly income destined for credit payments) will decrease, increasing the available income from your monthly budget.
- Possibility of additional amount
In addition, there is also the possibility of, when consolidating credits, obtaining an additional amount - which can be directed to other needs - without substantially increasing the value of the monthly installment.
- Prevents non-payment of debts.
Finally, consolidating your credits will prevent you from defaulting on individual debts, establishing a single financial commitment.
Are you considering moving forward with a consolidated credit? Find out if it will be advantageous with the free help of a credit intermediary from Poupança no Minuto, who will collect proposals and compare them, so you can find the best market conditions for you! Visit https://www.poupancanominuto.com/credito-pessoal?utm_source=poupanca-no-minuto&utm_medium=artigo&utm_campaign=571-poupanca-no-minuto for more information.
Start by simulating your consolidated credit, filling in the information about your current debts, here: