Debt Consolidation
Debt consolidation is simply a way of putting all your debts into one payment plan or product.
The idea behind it is that the consolidation will have just one smaller and more affordable monthly payment. You will also just have to deal with one company.
What are the benefits of Debt Consolidation?
- You can replace several debts with one debt
- Instead of making several payments each month you will make just one payment
- It will be easier to manage with one affordable monthly payment
- You could reduce your monthly payments without affecting your credit rating
- Reduce rates on high interest credit cards, store cards, overdrafts or loans
- You will know exactly when your debts will be repaid
Debt Consolidation types
There are 2 main types of debt consolidation - product or plan
Product: Debt Consolidation Loan
Plans: Debt Management Plans
Debt Settlement Plan
A consolidation loan is most likely to have the least affect on your credit rating but if you are genuinely struggling with your payments a plan may be a better option for you as it is likely you will not be able to afford loan repayments anyway.
Is consolidation right for you?
If you're juggling lots of different debts on credit cards, store cards and loans it can be very difficult to stay on top of them all. One missed payment can lead to increased debt, bad credit ratings and the spiral of debt will just continue.
Debt consolidation could help you if:
- you're finding it hard to manage all your debts
- you're being charged for late payment/non-payment of your debts
Lower your repayments today with debt consolidation Talk to one of our debt consolidation experts and find out if one of these could be the answer to your debt problems.
