Debt Consolidation Loan - Some people opt to eliminate the hassle of
paying several creditors by getting a debt consolidation loan that covers all of their debts.
I have
several creditors on my credit report that have no relation to me and several names with different address.
This might be the best option in case you
owe several creditors and so are unable to protect yourself against a plastic card company's lawsuit because of dire financial circumstances.
Debt consolidation is an effort to combine debts
from several creditors, then take out a single loan to pay them all, hopefully at a reduced interest rate and lower monthly payment.
The obvious benefit of a debt consolidation loan is one single monthly payment, instead of scrambling to
pay several creditors each month.
It is fairly usual that students borrow money from
several creditors with varying interest rates and different repayment schemes.
If you owe a total of $ 10,000 spread
among several creditors and can afford to pay $ 400 / month toward this debt, then it's going to take roughly 25 months to pay off your debts:
As a banking and insolvency practitioner, Ajinder has presented judicial management petitions
for several creditors.
Several creditors can have a security interest in the same property, but their interests are ranked according to priority.
Instead of paying several bills to
several creditors, you pay one to a debt consolidation company or bank.
Managing debt from
several creditors can easily become overwhelming and exhausting.
So, your sister does not have to deal with
several creditors / CAs or keep track of several bills payable at different interest rates.
And, we are in credit card debt - owing about $ 14,000 to
several creditors.