Three Loans That Can Save You Money

Posted By: Matt in Credit on 08/18/2014 at 13:41:26

A multitude of loans is available for consumers of all credit classes, but not all of them will allow you to save money. The following are three types of loans that can save you money while you enjoy the benefit of bettering your life:

The Debt Consolidation Loan

A debt consolidation can be a lifesaver if you are experiencing debt difficulties, and you need help organizing your finances. A debt consolidation loan is a large loan that will provide you with enough money to merge your existing credit accounts. The way that a consolidation loan will help you to save money is by reducing your interest rate to a reasonable number. Instead of having scattered credit accounts with high interest rates, you will only have one loan with a low interest rate.

A consolidation loan can save you from paying late fees, as well. With only one account to pay each month, you will never forget to make a payment. Various companies offer debt consolidation loans to consumers. If your credit is still in good shape, and you have a stable source of income, then you may qualify for such a loan.

The Home Refinance Loan

If you currently have a mortgage, then chances are high that you have a hefty interest rate. You may feel that someone rushed you into a deal with a high rate, and you may be wondering how you can save money. Applying for a refinance loan can help you to save money. Refinance companies can get your interest rate down to 2.75 percent. The lower your interest rate is, the more money that you spend toward your mortgage principal. Additionally, you could use the savings to make repairs on the home, or you can deposit them into your savings account.

The Federal Student Loan

Another type of loan that can save you money is the federal student loan. The government offers some debtor-friendly loans to people who want to further their educations. The interest rates for such federal loans have an average of approximately 6 percent. Private organizations and corporate banking institutions have much higher interest rates than federal student loans have. Furthermore, you can defer your federal loan payments while you are in school. You can also arrange to repay your loans based on your income.

You can still save money even when you are borrowing money. You just have to keep an eye out for friendly advice and debtor-friendly institutions.

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