Debt consolidation loans are beneficial not only for those struggling in debt but for practical entrepreneurs as well who are thriving in their business. Here’s why.

Investments make money

If you’re an investor and you’d like to have additional funds, you can consolidate you loans and save money on interests. The free money-or the amount you saved on those interests can be added to your investments.

Here are some of the most important reasons why people invest money on various investment portfolios:

  1. Investing money helps it grow over time. Some investments include stocks and bonds- which help grow and return your money in the long run.
  2. Making investments means entrusting your money to a certain bank or company. With the thought that in a few months/ years’ time, the money you’ve given them will multiply, but it always depends on the company you chose.

Debt consolidation loans support investment goals

Why did you invest money in stocks, bonds and other businesses? Perhaps you like a stable flow of income to support you during retirement, or you needed to grow your current businesses. Whether you are investing for income or for the future, you can take comfort on the fact that consolidation lessens your stress on handling your debts. Debt consolidation simplifies payment, reduces monthly repayments or interests rates and gives your credit file a lift.

It serves as a buffer for your investment risks

All investments are risky-you put your card on the table and the wind may blow it where you’re likely to get broke. Even the wisest and most experienced financial strategists also fail. But, with a reliable loan product that helps you roll your debts into one and makes it convenient and easy for you to pay your debts; you will have more money and time to spend on other investments to recoup what you lost.

Why you need a buffer or emergency fund:

  1. We seldom ask ourselves, “Why does health care really matter?” Well, as a person, staying alive and healthy should be one of our main priorities. Investing more on Health Care and Services should be put first. What’s the point of having a ton of money when you’re barely alive? Our wants and desires should be put aside so that we could focus more on the bigger issues. Even if the Hospital or the local clinic’s pricing is high, neglecting our health status shouldn’t be taken into consideration. Remember, we are only given one life to live. So we should nurture and make the most of the gift God has given us.
  2. Giving your complete trust to another person is hard. What more entrusting the money you’ve worked so hard on to complete strangers? There can never be enough assurance that they can keep your money safe and multiply the amount just like they promised. Having your own savings, aside from the investment you made could be taken into consideration. But, if the company you chose has many good reviews and feedbacks, why not give it a shot? Putting in little money at first could help you test the waters for yourself. Then, if you get the result you want, that’s the time you give them your trust.
  3. All companies have competitors. That’s a known fact. Some are better than the others and vice versa. In case the company you invested your money is, went bankrupt, then that’s the time you jump into action- well no. This is why you need a backup plan. Just like in relationships, if the first one doesn’t end so well, a reserve should always be ensured. Bad analogy but nevertheless, true. As mentioned before, you should have a separate savings account- that will be your reserve in case things don’t exactly go your way.

It helps you pay off all your high interest debts

High interest rates mean that you’re paying off for the cost of borrowing, and not the principal. It’s one of the reasons why many individuals bury themselves in great debt because they pay more than what they actually used. For example, if you took out a $1000 loan with 20% interest per month, you’ll have to pay $2000 in a year for the cost of borrowing, plus late penalties when you fail to pay it within ten months. That means, you’ll have to pay $3000 plus in all within the 10-month period for a $1000 loan!

Do you want to avoid the negative side effects of getting high-interest loans? Do your homework and study the pros and cons of consolidating your loan. If you’re an entrepreneur who needs additional funds to invest, we have debt consolidation loans to support your investment goals and serve as a buffer when your investments are losing money. Make an enquiry today to learn more about ALC Commercial’s loan products.