Better managed loan accounts can ensure multiple advantages for a debtor!

Loans can be inevitable in today’s tough world where the inflation is sky high. The social constraints and challenges make a family try to maintain a consistent lifestyle which in turn needs for an improvement in the existing TV, car or bungalow, although may be considered unnecessary when judiciously thought of. When all this results in multiple loans, it can be a tough ask for a salaried individual to manage them well!

The most common problem!

In most cases an individual defaulting in a repayment of a loan is not as important an issue, since this rarely happens because of lack of money. Rather, what is more common is one missing out on a repayment just out of sheer forgetfulness! And one can hardly blame anybody since this is due to the overload of multiple loan that makes it difficult to remember each and every loan to be repaid perfectly!

However, such mistakes can attract heavy penalties that can further increase the burden. A better way is to go for debt reconciliation through a single loan account.

Having a single debt account

All the existing loan accounts can be frozen and operated by a single debt management account. This can ease out the burden to a great extent. This will be operated by a financial service which is offering the single loan account. An individual availing this facility will have to pay the financial service an amount as the total of all loans for a month. It will be the job of the financial service managing the account to disberse the loans to the respective loan accounts on time.

Advantages of a single loan account

A single loan account has the advantages of:-
Better management avoiding penalties.
Lowered rate of interest.
Reduced time of repayment.

Loans with personal accounts can go up to 180 months of repayment but a single and consolidated loan amount has only up to 60 months to pay. Thus may increase the monthly instalments but can rid an individual of loans in less time!
In case of multiple loans, one often loses the track on the interests accrued on each loan account and in totality every month. But if one calculates, it will be quite a high amount. Instead, for a single loan repayment account, the rate of interest is lowered substantially. This is perhaps the best of advantages for a single reconciled and consolidated loan account.