Rockville Consultants Debt consolidation loan offers are a bait and switch scam. Rockville Consultants began flooding the market with debt consolidation, debt consolidation and credit card relief loan offerings in the mail with the My Rockville Advisors website. The problem is, the terms and conditions are confusing, if not suspect, to say the least.
The interest rates are so low that you would need almost perfect credit to be approved for any of their offers. Best reviews 2021, the debt consolidation finance review site, followed Rockville Consultants, Sooner Partners, Snowbird Partners, Gulf Street Advisors, Brice Capital and others.
Credit cards are a great way to earn rewards and points while spending. Many people use them in various ways, for example to pay medical bills, various purchases, buy a car, etc. However, if you’re not careful, they can get you in serious trouble. Credit card debt is becoming an increasingly prevalent problem for everyone around the world, especially after the negative impact the COVID-19 pandemic has had on the economy, forcing many to need coronavirus credit card relief.
Due to the pandemic, many people are struggling to pay off their credit card debt effectively. One strategy to pay off credit card debt as quickly as possible is to get debt consolidation loans. This strategy involves consolidating your debt and paying off multiple credit card debts at the same time.
Debt consolidation loans can be a great alternative as they have many advantages. If you are struggling with credit card debt, here are five reasons why you should consider paying it off using debt consolidation loans.
Be careful not to crack debt consolidation scams.
1. Lower interest rates
The most obvious advantage of using debt consolidation loans is that the interest rates with debt consolidation loans are usually much lower than those with credit cards. For example, the average interest rate for debt consolidation loans is 9.5%, while credit card interest rates are 14.52%.
A debt consolidation loan can help debtors pay off multiple credit card debts simultaneously. So, by getting a debt consolidation loan, you will pay off all of your credit card debt at one time and you will also not have to pay extremely high interest rates per month. This saves you the money you have to pay per month as you will only pay one bill per month.
Moreover, by paying off your debt using debt consolidation loans, the monthly bill that you would have to pay will not increase. The opposite is the case if you don’t pay your debts because the credit card companies take a percentage off your credit card balance. This means that the amount you have to pay each month also fluctuates.
For this reason, it also takes much longer to pay off credit card debt as the amount keeps increasing every month. Therefore, with a debt consolidation loan, you can pay off your debt much sooner.
2. Consolidated payments
By taking out a debt consolidation loan to pay off multiple credit card debts at the same time, you would consolidate all of your debts into one and ultimately make your life easier by improving your financial health. As a result, your multiple monthly payments will become one. By streamlining your monthly payments in this way, you will be able to manage your monthly budget and expenses much more efficiently.
3. Final debt-free date
After you get a debt consolidation loan and pay off your debt with that amount, you will also have a final date by which you have fully paid off all of your debts. This is not the case with credit card companies, which allow customers to continue to take on debt. Thus, the precise time it takes to be debt free also becomes indefinite and continues to change. This is good for people who can pay in full every month, but it can cause problems for those who don’t normally pay in full every month. Moreover, this also does not apply to people who will also not be in control of their credit card spending. For this reason, debt consolidation loans also give more motivation to stay focused and feel more relaxed.
4. Improve credit score
When you use debt consolidation loans to pay off your credit card debt, your credit score also improves much faster. This is only applicable if you pay off your debts and don’t fall back into the habit of over-buying and increasing your debt.
The reason credit scores improve is that debt consolidation loans are not counted as part of a consumer’s credit utilization rate. The lower ratio ultimately improves credit scores.
5. Pay off other debts
Since using debt consolidation loans to pay off your credit card debt lowers your interest rate, they ultimately save hundreds of dollars that would otherwise have been spent on interest. So, you can use this amount to pay off your other debts, for example, mortgage debt, student loan debt, tax debt, etc.
Important points to consider
Debt Consolidation Loans come with a fixed interest rate, a fixed monthly payment, and a fixed repayment schedule that helps determine the exact date when you will be completely debt free. For these reasons and those mentioned above, people choose to opt for debt consolidation loans to swap their credit card debts. However, while this is a great option, it may not be as good for everyone.
One of the pitfalls of debt consolidation loans is the freedom they give you to use them for anything. Therefore, you need to be careful and make sure that the loan is used for consolidate your debt and don’t be tempted to borrow things you’ll regret later. It’s important to remember that debt consolidation loans are also another way to borrow more money than you need to pay back.
In addition, be aware that debt consolidation loans also enter your credit history and influence your credit scores. So, you should pay at least the minimum amount before the due date so that there is no significant impact on your credit scores and your history.
The bottom line
A debt consolidation loan can be a great way to consolidate debt and not pay huge interest rates. However, you must consider all of the options available to you before applying for a debt consolidation loan.
More importantly, whatever method of debt repayment you use, you need to remember that in order to get out of debt, you need to be in control of your spending. Plus, it’s always a good idea to switch to cash from credit cards so you don’t fall into debt in the future again.