If you feel like you’re drowning in your debts, then a consolidation loan could make all the difference. Owing a range of sums of money to several lenders, all at different interest rates and with different deadlines can be extremely stressful. A consolidation loan allows you to pay off all of your existing debts at once. This leaves you with only one monthly repayment, with one loan to keep track of. The monthly repayments are much lower, and the interest rate is considerably less than you were paying before.
As these loans are specially designed for those in debt, you don’t have to worry about being accepted for bad credit. You can apply online and get your debt situation sorted before you know it. The company will assess your debts and devise an appropriate loan amount, interest rate and repayment plan to suit you. Remember that the lower monthly payments don’t mean you owe any less money in total, and it will take you a lot longer to get out of debt.
If a consolidation loan is not for you, then the best option is to consult a debt solutions company and get your own personalised debt management plan. These are flexible financial plans that can help manage your debt should you not be able to keep up with repayments. The professionals at your debt solutions company will be able to negotiate with your creditors for you when making your plan. Interest rates may be frozen, and you often will be left with a lower monthly payment. You may have to have a minimum amount of debt to qualify for a debt management plan, usually of about £1000, so it’s important to check the terms.
Whatever method you go for when sorting out your debts, it’s important to address the problem sooner rather than later. Paying back existing debts by taking out other loans will only suck you into a debt spiral that is extremely difficult to get out of. So don’t bury your head in the sand and look towards a brighter, stress-free future for you and your loved ones.