The Global Micro Lending Initiative:

"The only place poverty should be is in... museums."
-Muhammad Yunus, 2006 Nobel Laureate

Global Micro Lending

GML Resource Hub

Information and resources related to micro-lending, micro-loans, micro-investment, social finance, and peer to peer lending.

GML Mission Statement:

Everyone deserves access to a financial system which is fair, safe, and transparent. GML's mission is to foster connections between organizations which provide microlending and microfinance services.

Consolidation Loans

For borrowers with mounting high interest credit cards and personal loans, acknowledging the need to take control of their finances is a great first step to getting out of debt. Finding a fast way to pay down existing debt that fits your monthly budget is crucial for responsible money management. The majority of borrowers have good intentions when opening a credit card. A store credit card may have helped you receive an extra 10% off purchases, or the rewards card offered cash back on groceries, or the balance transfer card gave you a higher credit limit with a zero percent interest rate for a year. Keeping these accounts current can take up a lot of time. It's not unusual for borrowers to drive up their outstanding balances to an unmanageable point. A unsecured consolidation loan gives borrowers cash to pay off previous debts without putting any personal property at risk. Similar to the way credit cards work, unsecured loans allows borrowers to receive access to credit based off their credit history, not collateral. This also lets borrowers better manage their multiple debts by combining high interest debt into only a single loan with a fixed monthly payment.

Although the debt is still there, consolidating multiple debts into one payment helps alleviate the confusion related to having several credit cards. For instance, someone with a stack of credit cards will have a separate due date, monthly statement, and email notifications for each account. When consolidating debt, the borrower still owes the money, it's just been put together into one debt. Borrowers can refinance credit cards by applying online for a credit card consolidation loan. Anyone who has unresolved or overdue debt may benefit from starting over with a new loan.

It is important to consider whether consolidating the debt will offer you a lower interest rate than what you're paying now. Even if the new loan doesn't offer a better rate or terms, does the convenience of only tackling one loan save you time and aggravation? First, determine your total cost of a debt consolidation loan using a consolidation loan calculator. Understanding the total cost of borrowing can help you compare loans based on the total amount of interest and fees you will incur.

Let's review the advantages of getting a debt consolidation loan. You don't have to put any property at risk, you can pay off your debt, and can possibly save money with a lower interest rate. If bills are proving too difficult to maintain, paying off your debts by consolidating them into a single loan may be your best course of action.