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Bill consolidation, simply put, is the act of bringing multiple bills together in order for a lump sum to be paid off. For many people, this is seen as a great service, as it allows them to make fewer payments, albeit larger ones. However, others see it as more of a hindrance than a benefit. For those that are looking to consolidate their own monthly payments, here are some pros & cons that the likes of Robert Jain can draw your attention to.
PRO - One payment can be made per month instead of several. Depending on who you ask, this is the greatest benefit of monthly bill consolidation. Few people want to spend the time making several monthly payments to different organizations. Instead, they may be more intrigued by the idea of offering a single payment. According to names along the lines of Bobby Jain, not only does this cut down on time but it will reduce stress as well.
CON - Once you create a plan, you must stick to it. The reason why this may be seen as a con is that it boxes people into payment plans that they may have difficulty paying. If you cannot make the entire payment one month, it can have a negative impact on your credit score. What this means is that if you wanted to take out a loan, your chances of being approved will be lessened. Understand what you're getting into before setting said plan into motion.
PRO - You'll be less likely to make late payments. Seeing as how you'll make payments each month, it's unlikely that you will be late. What this means is that no matter how large a payment is, if you have the means to cover it, you can make it on time. Anyone that has ever consolidated their debt will tell you that this is a great advantage. It allows them to work off a schedule, which puts their minds at ease from a financial point of view.
CON - The interest rates tend to be considerable. This is especially true if debts persist over the course of time. When interest rates increase, people end up paying more in the long term. As a matter of fact, many people tend to forgo bill consolidation for this reason alone. They don't want to spend more than what's absolutely necessary. For those that are on the fence about consolidating their payments into one, consider this potential con beforehand.
PRO - One payment can be made per month instead of several. Depending on who you ask, this is the greatest benefit of monthly bill consolidation. Few people want to spend the time making several monthly payments to different organizations. Instead, they may be more intrigued by the idea of offering a single payment. According to names along the lines of Bobby Jain, not only does this cut down on time but it will reduce stress as well.
CON - Once you create a plan, you must stick to it. The reason why this may be seen as a con is that it boxes people into payment plans that they may have difficulty paying. If you cannot make the entire payment one month, it can have a negative impact on your credit score. What this means is that if you wanted to take out a loan, your chances of being approved will be lessened. Understand what you're getting into before setting said plan into motion.
PRO - You'll be less likely to make late payments. Seeing as how you'll make payments each month, it's unlikely that you will be late. What this means is that no matter how large a payment is, if you have the means to cover it, you can make it on time. Anyone that has ever consolidated their debt will tell you that this is a great advantage. It allows them to work off a schedule, which puts their minds at ease from a financial point of view.
CON - The interest rates tend to be considerable. This is especially true if debts persist over the course of time. When interest rates increase, people end up paying more in the long term. As a matter of fact, many people tend to forgo bill consolidation for this reason alone. They don't want to spend more than what's absolutely necessary. For those that are on the fence about consolidating their payments into one, consider this potential con beforehand.
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