Debt Refinancing – Debt consolidation



What is refinancing or debt consolidation?

Debt consolidation or refinancing is a process where you regroup all your loans or lines of credit in one single loan. This new loan has a new rate, defined by the lender, which is generally an average of your current loans' rates. Debt consolidation also has a new maturity date, which implies a different amount of repayment.

Generally the repayment of a refinancing loan is lower than all your actual loans.

What kind of loan can I refinance?

With debt consolidation, you can refinance almost any kind of loan:

> Auto or car loan
> Student loan
> Personal loan (travel, wedding, home improvement, etc.)
> ...

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Why should I refinance my debt?

Having multiple loans to manage can be really difficult. The payment dates, the rates and the loan conditions are different for each loan.

Debt consolidation is a good way to help you better manage your money. It gives you a lower rate than all your current loans, in a single payment and with a clear cost and repayment schedule.

Because credit card loans and lines of credit carry very high interest, it’s not unusual to use debt consolidation to refinance your credit card debt.

At the end, debt consolidation helps you save money.

Refinancing your debt is the best way to improve your finance if you have multiple loans.


Am I eligible for a debt consolidation loan?

To be eligible for a debt consolidation loan, you’ll need to meet some criteria:

> Be a UK citizen or permanent resident
> Be 18 or older
> Have a good credit history with your current loans.

What documents do I need to provide when requesting a debt consolidation loan?

> Proof of income (for example, most recent pay stubs and W2s)
> Copy of ID
> Proof of residence (for example, a copy of a utility bill)
> Two months' worth of statements for each credit card or loan you wish to pay off
> All your current loan paperwork

5 REASONS TO REFINANCE YOUR DEBT

Lower rate

Regroup payment

Change maturity

Lower monthly repayment

Fast and simple

Frequently Asked Questions

Yes you can and it will probably be a very profitable way to get financed. The majority of lending platforms will lend you money if you are an LLP or a Limited company. Please check systematically the Terms of use of each platform you intend to invest through, as they may vary significantly.
 


If you own a small business, you probably know how complicated it is to get a business loan through traditional circuits. Through peer to peer lending however, some barrier to entry are suppressed. First of all, the requirements are lower investors being open to risk taking, and so securing a loan is easier, faster and cheaper. The process being entirely on line and very user friendly, it takes not more than 20 minutes to register on the platform, approximatively 48 hours to get accepted, and up to 3 weeks to receive the money. The interest rates are lower and usually no hidden fees added. Moreover, the online investors are welcoming for new borrowers as they are rather eager to support business owners, often locally.
 


CompareLend.com offers business owners a free, unbiased and immediate access to investors on peer-to-peer platforms. It helps business owners to choose the best financing opportunity from what the market has to offer. Getting financed is then easier, cheaper and faster.


Using the peer-to-peer lending market will not only give you the opportunity to help small business owners grow and reach their goals, but also profit from very interesting return rates.

It will depend on the platform you have chosen to invest with. Please check systematically the Terms of use of each platform you intend to invest through, as they may vary.
Every peer-to-peer platform reviews borrowers before posting their loan application online, you should check their Terms of use before lending money if you need to be reassured. One should note though, higher the return on investment, higher the risk a lender is taking.

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