Debt Consolidation
What is Debt Consolidation?
- Debt consolidation is a way of gathering all your smaller debts together and paying them off with one, bigger and more manageable loan.
- This allows the debtor to keep track of their total debt and required repayments much better.
When Should Debt Consolidation be Sought?
- If you’re looking to pay off several debts from different creditors, it may be easier to consolidate the loans together into one monthly statement and payment.
How Do Debt Consolidation Programmes Work?
- The debt consolidation loan will be used to pay off your smaller debts, with the debt consolidation loan paid off in its place.
- The repayments of the debt consolidation loan will usually take place over a longer period and with lower interest rates.
- It will help to clear your debt in a generally much easier and less stressful way.
How Can Debt Consolidation Help Me?
- It can help you to gather all of your debts into one monthly repayment, making it easier to manage your remaining debt and your repayments.
- Instead of spending each day worrying about receiving bills from your creditors, you’ll have a regular repayment amount that you will be fully aware of and find it much easier to manage.
- The total amount that requires repaying is often far reduced, as the interest only accumulates on one loan rather than many loans.
- A reputable debt consolidation company will be able to develop a suitable repayment schedule for you based upon how much you can afford to pay each month.
- People often experience a great relief once agreeing to a debt consolidation plan, as it will give you direction, purpose and ultimately, a solution to your debt problems.
What are the Drawbacks of Debt Consolidation?
- If you’re going to be unable to fulfil the necessary monthly repayments that you agree to, you may run into big problems, like losing your possessions or your home.
- If your debt is too large and unmanageable, you may be best looking for an alternative solution.
- Some firms are disreputable, seeking to make a financial profit from your misfortune as opposed to giving you the best advice and solution to your problem.
When can I get Debt Consolidation Advice?
- You can call for impartial and non-judgemental debt consolidation advice any time; 24 hours a day, 7 days a week, 365 days a year.
How can I contact a Debt Helpline?
- Freephone: 0800 074 6918
- Email: info@e-insolvency.co.uk
