Fairfax, Virginia (webnewswire) June 2, 2018 – The Fairfax mortgage brokers at Fairfax Mortgage Investments released a blog explaining how debt consolidation loans work and how people can use them to gain better control over their finances. Debt consolidation loans combine all of a person’s debt into one loan, allowing them to make one monthly payment to cover all of their debts instead of making multiple payments to different loans.
Debt consolidation loans can be beneficial to people who have difficulty making the minimum payments on their debts, as having only one payment to make each month can make budgeting for that payment easier. In addition, the payments would be the same amount each month, further simplifying the payment process. People who do not see a significant change to their balance each month despite making consistent payments may also consider a debt consolidation loan. These loans typically have interest rates of 10% or less, allowing borrowers to pay more money towards the balance of the account instead of interest and ensuring that they can pay the debt off sooner. A lower interest rate can also make it easier to contribute the minimum amount each month, helping people avoid late fees and damage to their credit score.
Clients considering a debt consolidation loan will have to show proof of a stable source of income. Their credit score, credit history, total loan amount, and timeline of repayment may also be analyzed to determine whether they qualify. If they do, they will receive a loan and can use the funds to pay off their creditors all at once. Then, they will make monthly payments on this single loan, which carries one interest rate, instead of multiple loans with different rates and payment dates. The interest rate is fixed for the duration of the loan, and having a higher credit score can lead to a lower interest rate. People with high credit scores who find it difficult to keep track of multiple loans may therefore find a debt consolidation loan particularly helpful.
Fairfax Mortgage Investments offers debt consolidation loans for credit card debts, student loans, medical bills, and more. The Fairfax mortgage brokers are adept at handling challenging cases and have assisted thousands of clients through debt consolidation loans over more than 35 years of operation.
To speak with a professional mortgage broker for more information and how to apply for a debt consolidation loan, call Fairfax Mortgage Investments at 703-214-7255 or visit their website at https://www.fairfaxmortgage.com/. The firm is headquartered at 3900 University Dr #300,Fairfax, VA 22030 and serves the Northern Virginia, Maryland, and Washington, DC areas.