What is a debt consolidation loan?
If you are asking yourself “Should i take out a debt consolidation loan?” then you probably do need to. Debt consolidation loans are a form of personal loan that can be used to pay off existing debts and manage them as one whole payment. You take the influx of cash from the new loan, use it to pay off your existing debts and then make one, single, lower monthly repayment. This form of loan is useful for someone who has a lot of credit card debt, credit cards with high interest rates and a lot of household bills. If you’re struggling to manage all of the payments that you make each month, consolidating your debt into one monthly payment might be the solution for you.
Do I need a debt consolidation loan?
Before we move on to discuss debt consolidation loans in more detail; you should ask yourself the following questions. Have you negotiated your monthly household bill payments down to as little as possible? Are the interest rates on your existing credit cards and any other loans high? Can you manage to make the lower monthly payments you’ll make for the new consolidation loan? Asking yourself these questions will help you to make an informed decision about debt consolidation loans.
If you are struggling with debt, high interest rates and feel like there’s no light at the end of the tunnel, lowering the monthly contributions you make to pay off your debts will provide you with the relief you need to move forward to a debt free life. It may seem like years away at times, however, debt consolidation loans offer not only financial relief to people suffering from debt struggles – but emotional relief too.
I want to take out a debt consolidation loan. What’s next?
If you have decided that rolling all of your debt into one is for you; there’s still work to do in order to ensure that you make a success of it. Firstly, calculate exactly how much you’ll pay back on the consolidation loan and how much money you will save per month by doing so. Take a look at how much you spend on other outgoings such as food and luxury items too and cut out what you can to keep on top of your finances. Consider debt counselling to look at how to prevent getting into further debt in the future.
Let us help you find a loan that suits your needs, we are flexible on the term length and the amount yo wish to borrow, so you can tailor the right loan for you, just apply now and we’ll help you sort the rest out.