Do you have trouble paying massive credit cards debts ? Perhaps you may want to look at debt consolidation.
Typically, a bank that offers debt consolidation services will pay up all your debts while you deal with a single bank loan.Debt consolidation is a great way to combine all your different debts such as credit cards, loans into a single debt with a longer repayment period and ease of management.
Debt consolidation is also useful if you have very huge credit card debts.If you have problem repaying your minimum credit card payment, you can consolidate your credit card debts and convert it into tenure loan. For an example a RM 10,000 minimum payment can be converted into 3 years of term loan. This will enable you to improve your financial situation tremendously. You will also be able to save your CCRIS or CTOS credit score as being able to repay your loan on time.
To be rather honest, you may not enjoy better interest rates when doing debt consolidation. Some packages do offer good interest rates. To be really sure, understand the type of interest rates and it’s effective interest rates that you will be enjoying and consolidate.
Debt consolidation may be a temporary solution to get out from credit card debt however this is not a permanent solution for your debts. Debt consolidation may work like a double edge sword where you manage to consolidate your credit card debts into term loans for some extra cash however you end up maximizing your card debts again. It is important to make your plan to get out of debts and be prudent with your spending even with debt consolidations.
At the moment, there are many banks in Malaysia that offers debt consolidation service.