Consolidated credit to gather debts: What are the advantages?
Adding different debts into a single credit is possible, and not only simplifies the repayment process, but also saves money on all. Understand all the advantages of this financing.
What are the advantages of combining debts into a consolidated credit?
Do you know what consolidated credit is? This is a financial solution that allows you to combine several debts, such as personal loans, credit cards, and other loans, into one financing with a single monthly installment.
The goal is to simplify personal finance management and alleviate monthly burdens, through more advantageous conditions like lower interest rates and longer payment terms.
Let's look at all the advantages of hiring a personal loan:
- Lower interest rates
As a rule, consolidated credit allows access to lower interest rates applied to other credits, such as credit cards or small consumer debts. This can result in significant savings in the long run.
- Extended payment deadlines
Consolidating various credits makes it possible to choose a longer payment term, which will reduce the combination of monthly installments to be paid. Although in the long run, this will mean paying more interest, it is a good option for those who need to reduce expenses in the short term.
- Reduce the monthly burden of debts.
These conditions will allow you to pay significantly less for various debts. The single monthly installment that you will be paying for the credits will be lower.
- Better management with a single debt
By consolidating credits into one, management becomes simpler, only having to deal with one debt, reducing the risk of forgetting a payment.
- Reduced effort rate.
By reducing the amount you pay monthly in installments, your effort rate (percentage of monthly income allocated to debt payment) will decrease, increasing the available income in your monthly budget.
- Possibility of additional amount
In addition, there is also the possibility, when consolidating credits, of obtaining an additional amount - which can be directed to other needs - without substantially increasing the value of the monthly installment.
- Prevent debt default.
Finally, consolidating your credits will prevent you from defaulting on individual debts, establishing a single financial commitment.
Are you considering moving forward with a consolidated credit? Understand if it will be advantageous with the free help of a credit intermediary from Poupança no Minuto, who will collect proposals and compare them, so you can find the best market conditions for you!
Start by simulating your consolidated credit, filling out the information about your current debts, here: