Debt Consolidation Loans

Debt consolidation is the process of grouping a number of outstanding debts into one affordable monthly repayment. For example, if you have a credit card debt of £1000, a store card of £500 and an existing loan of £2500, these could all be consolidated into one loan with a lower interest rate and/or lower monthly repayments from a longer repayment term.

Often some or all of your debts are based on uncompetitive interest rates – particularly when borrowing on store cards or even car finance from a garage. One competitive loan from ourselves can be used to repay all of your collective debts, leaving you with one low interest payment. Moving those high-interest rate loans to a more competitve rate is where consolidation could save you money, as well as make managing your debt easier.

Normally, people turn to consolidation loans when they are finding it difficult to meet the repayments on their current debts, however you do not need to be struggling to benefit from these. If you were to add up all of the debts you do have, from credit cards to hire-purchase, you may be surprised at what this comes out as. Moving these debts to a lower interest loan can save you money.

Loan Consolidation

A debt consolidation loan can offer a way to re-organise your financial outgoings into a single monthly repayment that is realistic for you to meet. If you have a number of outstanding debts, such as personal loans, credit and store cards, you could clear these debts with a consolidation loan. You would then have the one monthly repayment to meet, which will typically be lower than your previous outgoings, as the repayment term will be longer and therefore allow you to spread the payments more thinly.

Taking control of your debts will make you more aware of you money situation and by spreading them over a greater amount of time the strain on your finances will be eased.

Having a number of bills falling through the letter box can be a real pain to organise and repay, by consolidating these into a single payment you will only have the one bill to concern yourself with – making organising your finance far simpler. Taking this approach means it takes less effort to make sure that you meet the repayments, and with just one bill the risk of forgetting to pay, and therefore facing non-payment charges, is removed.

Debt consolidation can help you stop worrying about your finances every month and give you the freedom to get on with your life. If you are struggling with debt don’t delay. Complete our no obligation quote form today and see how you can transform you current outgoings into one manageable monthly payment.