A debt consolidation loan is one finance option which can help you manage your financial situation. It looks at the debts you currently hold, checks them for eligibility and creates a financial structure which enables you to take out a single loan, covering the value of all eligible debts, and hopefully reducing your outgoings. The loan is paid to you in full and you need to make contact with each of your creditors to settle your debt in full with them.
Debt consolidation loans can be taken out over a number of years, thus allowing you to reduce your interest payment to a more manageable level. Additionally, the debts you have may be charging you a much higher level of interest than a debt consolidation loan carries. Given that you can reduce high-level interest rates, combined with extending the loan over a longer period, the ability of a debt consolidation loan to lower your monthly outgoings is strong. Combining all payments into one, simple repayment, can also reduce the stress and time it takes to service all these debts.
Debt consolidation loans need to be gauged in-line with your existing commitments, expected income levels and attitude to risk (nothing in finance is risk-free). Contact us to hear more about your debt consolidation options.