Everything You Need to Know About Debt Consolidation
Debt consolidation is a process by which all your outstanding debts are rolled into a single, convenient payment. If this is carried out in the correct way, it can lower your total interest rate and make your new single debt more affordable. One of the best ways to carry out a debt consolidation is to procure a credit card that allows you to do a balance transfer at a lower interest rate, and this is how many private citizens do it. This can still be done by a company or organization wishing to consolidate, but it may be more difficult to find a credit card that allows balance transfers of larger balances, such as a business would normally have.
Organizations can still do debt consolidation if they can work with an alternative lender to accomplish the transaction. This could be in the form of a fixed-rate debt consolidation loan. By borrowing some amount of money from an alternative lender, you can pay off all other credit cards or outstanding debts, and hopefully even have some money left over for cash flow. This will eliminate all the book-keeping associated with paying on multiple credit cards or other debts, and it will make your one remaining payment more affordable and much more convenient.
Debt consolidation is usually a good idea for the reasons described above. However, there are times when it may not be in your best interests. For instance, if you expect to pay off all your credit cards and debts within the next 18 months simply by making normal payments, you may not gain much through consolidation. Also, if you’ve established a history of late payments or non-payments, your credit score will probably be questionable, and you may not even be eligible for securing a debt consolidation loan.
If you’re looking to consolidate your organizational debts, we may be able to provide financial assistance. Contact us at Brightview Commercial Capital, so our financial specialists can work with you on a strategy for consolidation.