If you have several loans, there’s no need to pay the minimum payments several times a month. You will find that it is better to consolidate all of your student loans with bad credit into one large payment (at a lower interest rate) and pay the loan off quickly rather than make a lot of little payments that could turn into three times the original, you can find an interesting game of online roulette here. You could save hundreds – if not thousands – of dollars. The process isn’t, really, that hard. But it does take time, so, it’s best to get started sooner rather than later.
Who doesn’t want less hassle in their daily life? You can start decreasing the hassle by lowering the number of bills you pay every month. Most of us hate tracking the bills we have to pay on different dates of the month. Why not consolidate, and lump all those payment dates into one monthly due date.
Lower the payment. Debt consolidators usually calculate your loan’s interest rate based on the existing interest rates. The calculated interest rate is usually less than the existing rate. You could lower your monthly payment. But, watch out for fees that when added to the payoff amount, actually make your loan higher. If that’s the case, you probably want to look at another debt consolidation company for your student loan. While lenders are required by law, according to the Federal Family Education Loan Program, to offer the same interest rates for consolidating student loans, the additional fees and benefits can either add up to a huge loss or a tremendous savings. It just depends on the lender.
It’s possible to earn reductions through either setting up withdrawals directly from the bank or paying on the due date (every month). Most lenders offer reductions up to one percent if you have been paying consistently paying on time for 24 or 36 months. For example, if your current interest is 7 percent, after all the discounts it could be 6 percent. Believe me, over a period of several years, 1 percent interest will add up to a big savings.
Improve your credit history. When a person is paying several loans at a time, he or she will inevitably miss a payment here and there. Besides incurring late fees, you will probably also damage your credit history. Today’s bad credit means tomorrow’s high interest rates – watch out!! If you consolidate into one loan and pay it every month (on time), it is possible to improve your credit at any new casino.
Once you’ve decided to consolidate your student loans, choose carefully. As a rule, student loans can only be consolidated once. There’s no changing your mind, and going after a “better looking” loan just doesn’t work. The exceptions to this rule are: 1) if you choose to continue studying and take out another loan and 2) if you didn’t include all your student loans with bad credit in the first consolidation. No doubt about it, you must choose your lender carefully.