Many UK consumers find they build up a large amount of unsecured debt over the years by taking out loans and credit cards. All of these accounts will have different payments due on different dates of the month, sometimes making it hard to keep on top of your financial situation, and making it difficult to keep track of what needs to be paid and when. Depending on the interest rates and length of the agreement, unsecured credit spread out over numerous accounts can also be expensive, and may be eating into your budget each month.
Taking a loan for Debt Consolidation, is the process of bringing all of these accounts together into one payment, going out once a month. Not only does it have the benefit of being easier to manage, it also has the potential to bring down the overall payment you are making towards your debts. It’s important to be aware that consolidating debt over a longer period may increase the overall cost of the borrowing in interest payments, but it can allow breathing room on a monthly basis by lowering the monthly repayment.Please read Consolidation Loan Advantages and Disadvantages before applying.
Debt of any kind especially high interest credit card & loan debt is something that can cause a lot of worry. The pressure becomes more intense if your financial situation changes, such as reduction in income or change of job / pay dates. Often the minimum repayment the credit card company ask for is not much more than the interest added for that month, meaning you keep making payments but the balance doesn’t really seem to come down. If you are becoming concerned about debts then you should seek out options to manage them, the solution for you will differ if you have already made late or missed payments on current debt repayments. Interest rates you are eligible for may be higher, but that doesn’t mean you can’t acquire a more manageable payment by consolidating.
If approved for a debt consolidation loans it will not only help to manage money more efficiently but may also help to improve finances going forward as one payment to meet instead of multiple ones means the chances of missing a payment is reduced. Making the repayments on time and in full will start to build a payment profile that lenders will consider when assessing future credit applications. It takes time to rebuild a credit score, but in time you will get to the point where you can start to get access to the better rates offered by the banks and main stream lenders.
There are many people who have a large amount of debts to pay off and we see many people struggling to pay off the whole amount. If you’re considering applying for a debt consolidation loan it is essential that you determine what type of borrower you are. For example, if you are a homeowner, and you have missed repayments on existing debts in last 6 months, you may have the option to look at a secured loan to consolidate. Secured loans get their name as they are “secured” against the equity available in your property, and have the generally benefit of lower interest rates. It is vital to keep up repayments on secured loans, as your home may be at risk if you miss payments on any loan or mortgage secured against it. However if you have missed any repayments on existing debts and are not a homeowner, the bad credit will mean that the amount of lenders willing to lend to you will be more limited than that of someone with a good credit rating. There are lenders who will consider your application for debt consolidation loans with bad credit however, and making an application with Easy Loans Company is the first step in finding out if you qualify.
Bad credit is not the end of the road if you are looking to obtain a debt consolidation loan, but not everyone will qualify with adverse credit present on their credit file. If you are declined for credit to consolidate your debts, there are other options. The Money Advice Service has lots of advice and tips on managing your money, budgeting, and what to do if you find your income is no longer covering your monthly bills.
Their website is www.moneyadviceservice.org.uk. You’ll find links and phone numbers to point you in the right direction in getting debt advice online, on the phone or face to face.
Act now if you are feeling under pressure by your monthly credit commitments. Help is at hand and you don’t need to suffer in silence. Make an application today and find out if Easy Loans Company can help.
What is a Debt Consolidation Loan?
Bringing all of your current outstanding unsecured credit into one loan amount, with one lender, with a single monthly payment
What is the benefit?
If you are paying a lot out each month towards your debts, a debt consolidation loan may lower the amount you are paying overall. It’s also easier to budget effectively with just one payment to consider
I have bad credit. Can I get a Debt Consolidation Loan?
There are lenders out there who will consider all financial circumstances. Bad credit doesn’t necessarily mean you can’t get the loan you need
I have been declined but I’m still struggling with my monthly debt payments. What should I do?
Seek help immediately through www.moneyadviceservice.org.uk. There you will find tips on money management and places to go for free debt advice
Can I choose which debts I consolidate?
It’s entirely up to you what you do with the money once you have it, although it’s recommended you consolidate all the debts possible. The aim is to lower your monthly payments. This will be difficult if you are piling new borrowing on top of old
Shall I try my bank first?
Yes definitely. The interest rates offered by your bank will be lower than those offered by other specialist lenders. However, if you find your bank can not help, fill in an application form with Easy Loans Company today and see if we can find you an alternative that works for you
One affordable monthly payment
You could pay less monthly than you are currently
Easier to keep track and budget effectively
Loans and credit cards consolidated over a longer period, may be more expensive in the long run
If you take more than the amount need to consolidate, your overall debt level will increase
A change in circumstances could make the new payment unaffordable