What is Debt Consolidation?
A debt consolidation service provides a loan which pays off some or all of your existing debt, and replaces it with a single loan with a single payment. The promise is to replace various high interest loans, such as credit card debt, with a single loan with a lower total monthly payment.
Why To Choose Debt Consolidation Loan?
Are you wondering why choose a debt consolidation loan? If you are one of the many people who continually struggle to cope with an ever increasing amount of debt the solution could well be within your reach.
Are you feeling overburdened with debt? Are you paying out too much every month for your credit cards, store cards and loans? Then why not replace them all with one, lower, convenient repayment through a consolidation loan?
If your are looking to :-
then a debt consolidation loan could provide the answer.
- Reduce Interest Rates.
- Lower Your Monthly Payments
- Avoid Bankruptcy
- Consolidate Your Bills
- Only One Monthly Payment
- Simply Get Out Of Debt The Fastest Way Possible
How can a debt consolidation loan help with debts?
A carefully-managed debt consolidation loan can help in the following ways :-
- Cut your monthly payments.
You may be able to find a debt consolidation loan that works out cheaper than the combined interest of your current credit cards, overdrafts, store cards etc. Any method of borrowing that will charge less interest can cut your debt considerably.
- Make your payments easier.
If you're in trouble because you forget to pay your bills, opting for a debt consolidation loan will mean just one monthly payment. Many lenders will allow you to pay by Direct Debit, so you won't even have to send a cheque.
- Improve your credit rating.
If you're finding it hard to get credit, a debt consolidation loan can help to slowly rebuild your credit rating. Pay your bills in full and on time, and your credit history record will soon show an improvement. After a certain period, the arrears on your credit record should disappear and you will be able to apply for a cheaper loan.
- Consolidation loan
can give you a fresh start, allowing you to consolidate all of your loans into one - giving you one easy to manage payment, and in most cases, at a lower rate of interest.
How to find the best debt consolidation loan?
The best debt consolidation loan varies from person to person, as the loan you're offered will depend on your financial circumstances.
Secured on your home, low cost, low rate, cheap, low interest debt consolidation loans can sweep away the pile of repayments to your credit and store cards, HP, loans and replace them with one, low cost, monthly payment – one calculated to be well within your means.
With a Debt Consolidation Loan you can borrow up to 125% of your property value in some cases.
It can reduce BOTH your interest costs AND your monthly repayments, putting you back in control of your life.
A Debt Consolidation Loan is a low cost loan secured on your home. It frees up the spare capital (or equity) in your home to repay your store card and other debts.
Are debt consolidation loans expensive?
On the whole they are more expensive than other loans in terms of APR. This is because your credit rating will show the bank that they are taking a risk in lending to you, and they have to cover themselves in case you don't keep up your monthly repayments.
Debt Consolidation Loan rates are variable, depending on status. Your monthly repayments will depend on the amount borrowed and term.