Mahomes Capital Reviews and Complaints
Mahomes Capital understands that life happens, and sometimes, debt is inevitable. You can avoid high daily compounding interest and save money for your future and family with a Mahomes Capital debt consolidation loan for your unsecured debt.
Based on Mahomes Capital customer reviews, this one easy step, you can take control of your finances and save thousands over the course of your loan. That’s money that goes into your pockets – not to your lenders or credit card companies.
Here’s an interesting thought; have you ever wondered why your friend or colleague raves about debt consolidation and often sits back stress-free despite debt overhanging their shoulders? Well, it’s because debt accumulation comes with its own peculiarities that require a sneaky way out. And consolidating credit card debt is one of those loopholes that can make your financial position stronger and leave you more capable of paying off stubborn debt.
We all have struggled with debts at some point, especially since financing a particular lifestyle can become expensive by the day. This is something that shouldn’t be taken as an alarm. Why so? Well, because with every problem there is a viable and sustainable solution. Here, debt consolidation is the answer that can solve all your debt and financing concerns. Let’s break it down and get a deeper insight into what this intriguing process really is.
Debt Consolidation –What It Is
Understanding financial terms can seem boring, confusing and leave you feeling intimidated. But not when you have access to the right guide. To put it in the simplest terms, debt consolidation is as close to what the name suggests – it refers to the merging or consolidating of several high-interest debts into one that comes with a lower rate of interest. Individuals with generally high credit card bills opt for this method to refinance their loans and pay off their dues.
This leaves you in a better financial position to pay back debt. But, it is important to remember that this process does not entirely eliminate your debt woes. Your original debt stays, the terms and conditions of its payoff are just altered and adjusted to make life a bit less stressful.
How It’s Done
Debt consolidation can be done in many ways. All of which seek to do the same thing – merge your debt payments into one.
In the first option, you can get almost no interest rate and balance-transfer your credit card. This essentially means transferring all your debt payments on one card and paying the balance in full when required. But, for this, you need to have a credit score of a tycoon. It should be over 690 points to ensure you have this option on your table.
On the other hand, you can consolidate your debt and get a fixed rate of interest on it. You can pay the loan in installments over a certain period. This is viable if you have a lower credit score of 689 or below. And, before you question whether the interest rate for those with a higher credit score would be lower, the answer is yes. It all boils down to your credit score.
You can even take out a 401(k) loan or a home equity loan. These options are riskier for your retirement or home though, so you might want to get in touch with your financial advisor and discuss your debt-to-income ratio and credit profile before taking on these options.
Factors Indicating Debt Consolidation Is The Right Match For You
There are several indicators that you can look at while deciding if this is the right approach for your refinancing project. How successful the process depends on your debt monthly payments. If this including your rent or mortgage payments does not exceed half of your gross income for the month, then you’re good to go.
Secondly, your credit score should be high enough to get you the lowest or almost zero interest rate. In addition, you should be able to pay it off within 5 years based on your income levels and monthly expenses.
Moreover, debt consolidation can come with a loan origination fee as well that can be around 15% to 25% of your total debt.
The Risks Involved
The biggest risk in debt consolidation is having your credit scores drop. This can hurt your chances of taking a big loan in the future, say for instance you wish to buy a car or pay your child’s tuition fee. Why is this so? Well, lower credit scores indicate weak financial responsibility and credibility, making it a roadblock in acquiring large loans. Thus, if you do seek to go for this option of refinancing, be sure to combine it with measures that can pull up your credit score going forward. Some of them are as follows.
- Keep an eye on your credit card reports. In case of any discrepancies or errors, alert your bank immediately.
- Avoid making large purchases with your credit card. Instead, opt for personal loans with payment options in installments to keep your credit score stable.
- Observe financial prudence. Avoid spending too much on items that are not needed. You can set a monthly budget for yourself and focus on spending where required.
- Make timely payments via automatic payment options on your credit card. This will help you stay up to date with your payment and not miss out on them.
The Alternative
If debt consolidation does not cut it for you, you can opt for debt settlement or debt management. Here a customer credit counseling services can help come up with a debt payment plan for you that is viable and sustainable. You can even work out and communicate with your creditors to lower the interest rates. This process is known as debt settlement and is often the last resort consumers go for.
The Bottom Line
Debt consolidation can bring back comfort in your life and have you sleeping peacefully at night. The execution however surely depends on your credit score profile among other factors. So, you might want to weigh out the pros and cons first and see if you can land yourself a feasible deal or not. Be sure to head on over to your bank and speak with your bank representative or financial advisor first for this, You don’t want to end up hurting your credit score by jumping in without having done your homework.