A form of short-term financing, personal loans are required to be paid back over a specified period of time in regular installments. And while secured credit cards tend to be the easiest form of credit to obtain with a low 500 credit score, it may also be quite easy to gain some small personal loans, especially if you have good credit. However, personal loan debt consolidation is the best way to go if you are trying to increase your credit score and pay off debt in a timely manner. Consolidating your debt will allow you to take advantage of lower interest rates and extended repayment periods, and will allow you to increase your ability to make payments and consolidate into a debt that you will be able to repay quickly and easily.

Debt consolidation is a process in which you take out another loan at a lower APR than what you are currently paying on your credit cards or other loans. The second loan is used to pay off the first, and you will typically pay that loan off in about two to four months. By consolidating all of your debt into a single lower APR loan, you will be able to pay off your debt more quickly, pay less interest, and pay less overall debt. It may seem like your debts would be all harder to manage when you already have high APRs on many of your bills, but the truth is that when you pay off several smaller personal loans that are all at different interest rates, your overall monthly payment will decrease significantly. This will allow you to pay your debts off faster and consolidate into more manageable debt.

If you choose to consolidate with a sofibre card, then you will have many more options available to you. You can make payments to all of your creditors simultaneously, and you can even take a payment holiday once per year, reducing your overall payments. Many credit card companies also offer extra incentives when you consolidate, such as reduced APR over the life of the loan, or a percentage reduction if you plan to make regular payments. Regardless of which method you choose to pay your debts off, it is important to remember that you will need to make regular payments to ensure that you are getting the lowest possible interest rate, and by combining your small personal loan payments into one large payment, you will make it easier and less stressful to manage.