Budgets are significantly tighter for many households these days, and many will have turned to borrowing via credit cards, store credit and loans to afford the lifestyle they enjoyed previously. But if the debts have been growing, are you unsure about how to repay them?
Debt consolidation loans could help round up the existing debts into one easier to manage outstanding debt. Not only could a debt consolidation loan make your debt easier to manage, it may also reduce the amount of interest you pay by having all your debt in one place.
What can I use it for?
A debt consolidation loan can be used to pay off different types of debt:
- Personal Loans
- Store Cards
- Credit Cards
- Overdrafts
Benefits of debt consolidation:
- Streamlines finances – combing multiple outstanding debts into a single loan reduces the number of payments and won’t have to worry about multiple due dates
- May reduce monthly payments – your overall monthly payment is likely to decrease because the future payments are spread out over a new and perhaps extended loan term allowing you to free up some of your monthly expenditure
- Could lower your overall interest rate – With the average annual interest rate for credit cards being 22% APR you could be going on a lower rate of interest through a mortgage or secured loan. You will be going from high interest unsecured. debt to low interest secured debt
- Boost your credit score - with one monthly payment easier to keep track of and on time, your credit score can improve
Can I get a debt consolidation loan if I have bad credit?
There are specialist providers offering debt consolidation loans for adverse credit. The good news is if you keep up with the monthly payments on your debt consolidation loan, and have no other adverse credit factors, this should have a positive effect on your credit score in time.
If you are worried about managing growing debt, discuss your options today with one of our advisers.
SPEAK TO AN ADVISER
If we think you are eligible, we will introduce you to a nominated secured loan specialist company. Fees may be payable but these will be discussed during the advice process. Securing debt on your property, may mean that you are paying off a higher amount over time and the duration of the debt maybe extended.
THINK CAREFULLY ABOUT SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBTS SECURED ON IT.
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