Did you know that over the last 6 years, they have seen a 44% increase in the number of people seeking debt advice in UK. According to the survey conducted by The National Consumer Council, 6 million families in the UK are already struggling to make repayments towards their Debt!
Of all these, 80% of the debts are due to credit card borrowing, loans or mortgages. Knowing your finances well and making sure all you repay all the debts on time goes a long way in helping you keep a good credit record.
However, if you already have a bad credit record, do not fret, as a
debt consolidation loan is the solution to your multiple payments and high interest rates.
A debt consolidation loan primarily:
1. consolidates your debts
2. gives you a lower monthly amount to repay
3. now, you make monthly payments to just one lender
Does it appear too good to be true? In a way, it is.
Debt consolidation loan merely clubs all your individual payments. This amount, being, bigger than the original loans you have taken, helps you get a lower rate of interest on the whole amount. Thanks to lower rate of interests on bigger sums of money, you can use the money from debt consolidation loans to repay all your existing debts and then actually pay a lesser amount every month; that too, without the hassle of remembering different dates and details of different lenders.
However, you may have to extend the payments over a longer period of time than your existing debts, but this entirely depends on your ability to pay.
All in all, a debt consolidation loan is the right option if you are looking forward to managing your debts in a better way and most importantly, peace of mind.
The author is a business writer specializing in finance and credit products and has written authoritative articles on the finance industry. The author He has done his masters in Business Administration and is currently assisting adverse-credit-debt-consolidation as a finance specialist.
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Debt Consolidation Loan
