Consolidated credit to combine debts: What are the advantages?

What are the advantages of consolidating debts into a consolidated credit?

Do you know what a consolidated credit is? This is a financial solution that allows you to combine multiple debts, such as personal loans, credit cards, and other loans into a single financing with a single monthly installment.

The goal is to simplify personal finance management and relieve monthly burdens, through more advantageous conditions such as lower interest rates and longer repayment terms.  

Let's then look at all the benefits of hiring a personal loan:  

• Lower interest rates

As a rule, consolidated credit allows access to lower interest rates applied in other credits, such as credit cards or small consumer debts. Which, in the long run, can result in significant savings.

• Extended payment deadlines.

Consolidating various credits makes it possible to choose a longer payment term, reducing the monthly installments to be paid. Although in the long term this will mean paying more interest, it is a good option for those who need to reduce expenses in the short term.

• Reduce monthly burden with debts.

These conditions will allow you to pay significantly less for various debts. The single monthly installment you will be paying for the credits will be lower.

• Better management with a single debt.

By consolidating credits into one, management becomes simpler, as it only has to answer to one debt and reduces the risk of forgetting any payments.

• Reduced effort rate 

By reducing the amount you pay monthly in installments, your effort rate (percentage of monthly income allocated to credit payments) will decrease, increasing the available income in your monthly budget.

• Possibility of additional amount.

Furthermore, there is also the possibility of, when consolidating the credits, obtaining an additional amount - which can be directed to other needs - without substantially increasing 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 gather proposals and compare them so that you find the best market conditions for you!

Start by simulating your consolidated credit, filling in the information about your current debts, here: [URL]