The Pros and Cons of Debt Consolidation
With so much advice available about debt consolidation how can you be sure its the right solution for you?
I would like to thank everyone that has been involved in operating our account and
hope you understand how grateful we are for all your help and assistance in helping us through a very bleak time in our lives.
Once again, many thanks to you all for your professionalism and understanding.
Mrs L. Lincolnshire
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debt consolidation - advantages and disadvantages
Debt consolidation loans are a means of combining all your outstanding debts into one large loan in order to obtain more manageable monthly payments. For instance, if you borrowed £6,000 towards buying a car and had run up a further £4,000 on your credit and store cards, these bills could be 'consolidated' into a single loan for £10,000. By doing so, it's possible to lower what you pay each month as the interest rate for a debt consolidation loan will be much lower than that charged by credit and store card companies. In some cases, it may also be possible to extend the length of the repayment period. But a debt consolidation loan is not a magic wand that will make your debts vanish. The money is still owed, what's changed is that your debt now takes the form of one loan with one monthly repayment. Effectively, a debt consolidation loan offers the opportunity of a fresh financial start. If you're in the market for a debt consolidation loan look for one which offers a fixed interest rate. You then know exactly what you have to pay monthly and will be able to budget more effectively. It's also be a good idea to pay by direct debit from the bank account into which your wages or salary are paid. Obtaining a debt consolidation loan is dependent on your credit rating. If your credit rating is not all it should be, it may prove difficult to get one of the cheaper consolidation loans. Even so, you may still save money. |
Consolidate your debts with Only Finance - loans over £5,000 |
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