Credit cards and online loans have become a "big stress" for many people in real life. The monthly repayment date and monthly installments make many people breathless. . High interest rates, uncertain income and irregular credit reductions have become everyone's nightmare, and it has become a daily skill for debtors to pay for their debts by paying for them. If the debt has not completely deteriorated and the credit report is still good, people with long debts are advised to consolidate their debts.

What is liability consolidation?

To put it simply, multiple liabilities of individuals or companies with relatively high interest rates are transferred through a single liability with lower interest rates.

Personally speaking, if you have multiple credit cards and multiple online loans, and the repayment dates for each credit card and online loan are different, then as a cardholder (borrower) you will have to spend money every month. A lot of time is spent on repayment, and if the repayment date is confused, it is very likely to lead to overdue payment. The tedious monthly repayments and the high interest on online loans can be paid off with a low-interest loan. Then, the debtor only needs to repay the loan in the end, thus saving money. Eliminating cumbersome repayment procedures can save a large amount of interest expenses.

Let’s use numbers to compare:

Jun A: Credit card - 100,000, annualized interest 10, credit loan - 100,000, annualized interest 15, credit loan - 100,000, annualized interest is 15, credit loan -100,000, annualized interest is 15, online loan -100,000, annualized interest is 24.

Then Mr. A’s total debt is 500,000 yuan. If the loan and online loan credit card are repaid in 24 installments, the average monthly interest payment will be about 6,000 yuan.

If Mr. A applies for a loan from a commercial bank at this time, the amount is 500,000, and the annual interest is 5, he will also repay it in 24 installments, and all the previous credit cards, credit loans and online loans will be settled. Clear, then the interest that Mr. A will pay for the next monthly repayment is about 2,500.

Through the interest comparison, we can see that Mr. A’s monthly repayment interest can be reduced by 3,000-4,000 yuan. One can imagine the advantages of debt consolidation through low-interest loans.

Well, many people will ask after seeing this. How should I borrow this 500,000? Indeed, it is very difficult for an ordinary person to borrow 500,000 yuan. The situation I mentioned above is to borrow through real estate mortgage.

If there are no fixed assets, how should we consolidate liabilities as a long-term borrower? First of all, it is very important to protect your credit report. For banks and lending institutions, your credit report is your most important asset, and a good credit report is the prerequisite for everything. Nowadays, many banks have successively developed many loan products. There is still hope for people without fixed assets to raise 200,000-300,000 yuan, such as provident fund loans, insurance policy loans, career loans, etc.

Many debtors spend too much in advance and end up in debt. Therefore, in real life, debtors must be able to restrain themselves. Don't compare or be vain. New things are so satisfying when you first use them, and you'll slap yourself several times after using them. Plan your debt carefully. Although money cannot be spent in this society, as long as you are willing to endure hardship and work hard, money is still easy to make.

Come on, debtors! What you are waiting for is not getting rich overnight, but a stage to bloom.