One way to deal with multiple loans at once is to do debt consolidation. This combines your debts into a single debt. Hence, you will only have to deal with one debt. You might also be able to settle your debts with a lower interest rate. There are two broad types of debt consolidation loans; secured and unsecured loans. Secured loans are backed by your assets such as a house or a car, which works as collateral for the loan. Unsecured loans, on the other hand, are not backed by assets - once such example is a personal loan. As a rule of thumb, make sure you shop around for the best deal for your situation and compare the services out there before committing to a loan.
Taking the first step in paying off your debts is always the hardest. Start today and you’ll be able to enjoy a debt-free life. You can also contact us to discuss the many ways we can help to reduce your debt.
This article is brought to you by CIMB as part of our ongoing efforts to raise the level of financial literacy among Malaysians. Financial knowledge and understanding are key to making well-informed and meaningful financial decisions towards positively improving welfare and well-being of communities. This is one of our many efforts to achieve CIMB’s purpose of advancing customers and society.
