A consolidation loan combines all you debt into one, instead of paying multiple account at the end of the month you will just pay one account. Usually the consolidator will obtain settlement quotes from your creditors and will settle these debts for you. Many people use this option because they prefer to have one loan to repay instead of many.
Pros for Debt Management African Bank Consolidation Loan
- Convenient – one Payment, one Creditor.
- May reduce monthly payments.
- May reduce interest.
- You may pay less in the long run.
Cons for Debt Management African Bank Consolidation Loan
- May cost more overall and the interest rate may be higher.
- May not reduce your total monthly payments by much or at all.
- May take longer to pay off.
- With reduced monthly payments, you may feel inclined to spend more or take yet another loan.
- If you are in arrears with some or many of your accounts, you may not qualify for a consolidation loan.