There are 8 benefits one can enjoy when they sign up for a debt consolidation plan with Lending Bee®.
1. Reduced default penalties
You may have incurred huge penalties from missing out on repayments for your previous loans. With a Debt Consolidation loan, all the existing debts are merged into one single loan. You will then be able to focus on paying only one loan and the likelihood of defaulting will be greatly lowered. Hence, eliminating any unnecessary penalties.
2. Increased convenience
After obtaining the debt consolidation plan, you are immediately relieved from the confusion of calculating the payments and interest accruing to multiple lenders on a monthly basis. It becomes easier to pay a single loan and you are able to plan better and make payments consistently.
3. Better credit ratings or credit scores
Your previous loan defaultments could have caused a dip in your credit score. Once you opt to consolidate your debt, you will be able to turn around the negative credit rating by making consistent and timely repayments. This way, you can significantly improve your credit score.
4. Just a single interest rate
Before consolidating the debt, you have the challenge of dealing with several different rates of interest on multiple loan amounts. This usually creates higher costs. The consolidated loan will give you a single fixed rate of interest at a lower cost, creating good savings.
5. Less administration fees
Many lenders do not charge any extra processing fee when facilitating the debt consolidation loan. The borrower also ends up saving the administration fees that are charged when one is servicing multiple loans. The amount of these administration fees could become quite hefty, thus resulting in a major saving.
6. Flexible loan tenures
Debt consolidation loans tend to have loan tenures that are flexible and they can go up to a period of 36 months. This depends on each individual and is important for you to ensure that you have sufficient time to clear off the entire debt. Choose a repayment plan that allows you to repay your loan comfortably.
7. Several convenient ways of payment
There are several convenient ways of making the payments of a debt consolidation plan with Lending Bee®. These include:
- Monthly giro deductions
- Sending a cheque
- Bank transfers (ATM, iBanking)
8. Ease of application and approval
Debt consolidation loans are easy to apply for and they also do not require a huge number of documents in order to be approved. This will be a huge benefit as you will be able to reorganise your debt as soon as possible.