Are you considering applying for a debt consolidation loan to get your monthly payments under control? But perhaps you’re wondering if anything could go wrong?
If that is a worry of yours, we have good news! As long as you are dealing with Symple Lending and other ethical companies like Symple Lending, your debt consolidation loan will be a net positive for your financial life. Of course, not every applicant for a debt consolidation loan gets cash right away — some applicants need to do a little work to get their financial house in order first — but when you are dealing with lenders who genuinely care about their customers, a debt consolidation loan is a win-win for all involved.
So, how can a debt consolidation loan go bad? Here are some missteps that have unfortunate consequences:
You start working with a company that promises debt relief or debt reduction instead of debt consolidation. Some companies will call up all your creditors and send them a demand to reduce the amount you owe, for a fee, of course. The very same day you sign up with a debt reduction program, your credit score takes a big hit. This does not happen when you work with a debt consolidation company.
You let your lender take charge of your decision-making. When you start getting behind on your monthly payments, or you are paying just the minimum monthly payment on all or most of your accounts, some finance companies will circle your account like vultures. They count on people not knowing about their debt consolidation options, or being too embarrassed by their financial condition to ask for the information they need, or feeling desperate to keep bills from mounting up. These companies may give you the consolidation loan you actually need, but they will not give you a favorable rate of interest. And they will not invest in the financial education you need to get past your financial problems for good.
You don’t include all of your debts in your consolidation loan. These loans are designed to replace multiple monthly payments at high rates of interest due on different days of the month with a loan with a single monthly payment and a lower rate of interest due just one day a month. Often, you will get to choose the day of the month you make your payments. Failing to declare all of your obligations when you apply for your consolidation loan defeats the purpose of the loan. It’s also a violation of your contract.
You take on new debts after you take out a consolidation loan. Consolidation loans require a good credit score, but they may also boost your credit score. You may be offered store cards and credit cards after you take out your loan. Be aware that the company that gives you your consolidation loan will be aware of this, and taking on new debt or new lines of credit can make renewing your loan difficult.
Companies like Symple know that they are more profitable when their customers are well-informed. Don’t hesitate to get multiple offers, and multiple answers to your questions about your consolidation loan!
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