If you are thinking about taking on a debt consolidation loan there are a number of costs factors that you need to be aware of and take i
As we have already seen, whilst it may make sense for some people to consolidate existing high interest debts into a single loan that may
Consolidating your debt usually encompasses taking out a single loan to pay off several debts that you already have.
We aim to offer sound and impartial advice on debt consolidation loans.
For many people consolidating several high interest debts into a one single loan makes sound financial sense for many reasons.
Firstly, it can make the task of managing your finances much easier and less stressful, as rather than having to manage your repayments and maintain the channels of communication with several companies, you only have to make one single payment each month.
Secondly, when you merge several loans into one single consolidated loan you may well have the opportunity to reduce your interest rates and renegotiate the terms and conditions so that you can reduce your monthly payments by extending the timeframe within which the loan is to be paid back.
And thirdly, for many when they take on a debt consolidation loan they regain control of their finances as they have a firm date that they are working towards by when their debts will be clear. Many also use it as an opportunity to “cut up the credit cards” (which often carry high interest rates) and hence avoid running up debts again!
We have specific sections that not only explain in detail what debt consolidation is but also what the subtle, yet very important, difference are between unsecured and secured consolidated loans.
Whilst unsecured consolidated loans are intended to cover unsecured debts such as credit card debts, personal loans, store cards – secured loans are underpinned by an assets, usually your own home.
With a secured debt consolidation loan you are usually able to borrow larger amounts at lower rates of interest with the loan being paid back over a longer period of time. However debt consolidation firms are only able to offer such favourable terms as your house acts as collateral should you default on the loan repayments – if you fail to pay back the loan you could well lose your house.
Our handy sections on “What Is Debt Consolidation”, “Unsecure Debt Consolidation” and “Secure Debt Consolidation” provide practical and helpful advice which will guide you in deciding which form of debt consolidation is right for you!
For those of you trying to decide whether a debt consolidation loan would improve your financial situation our page on “Debt Consolidation Advice” runs through all the key factors you should take into account in your decision making process – everything from budget planning advice and how to avoid slipping back into debt to how to get the best debt consolidation loan deal possible.
And for those of you who are still uncertain as to whether a debt consolidation loan is right for you, we run through the pros and the cons of debt consolidation – because whilst consolidating debts into one single loan may make sound financial sense for one person it may actually make things more difficult for another.
Having decided that a debt consolidation loan will improve your financial situation the burning question is often “How do I find a trusted debt management company?”
Our section on “Debt Consolidation Companies” provides very useful advice as to what you should expect from a reputable debt consolidation company and just exactly how you can find one.
Of course there are instances where a debt consolidation loan is just simply not appropriate for your specific financial situation, and with this in mind we run through some very real alternatives to debt consolidation loans;
In our section on “Alternatives To Debt Consolidation” we run through exactly what each of these alternatives are and what their implications are for you as an individual.
We sound and impartial advice on how to free yourself from debt once and for all!