Consolidation Loans Explained!

Put simply, a consolidation loan is a loan that allows you to pay off your debts. This means that instead of making multiple payments to multiple companies, your debts are consolidated into one lower payment each month for a longer period of time. Although you will still owe the same amount of money in the long run, these loans can really take the pressure off.

A consolidation loan doesn’t just ease the pressure of mounting debts, but it can even have a payment protection scheme is some cases. This means that if you are ill, in an accident or lose your job, you are covered for the payments, taking all the worry away, especially if you have dependents.

You should always research all the options available to you before committing to a loan. Different companies may offer you different deals as often the loan is tailored to your personal circumstances. It’s best to weigh up your options; having to pay big bills every month puts pressure on you, but these loans do have higher interest rates, so you will be in debt for longer.

Ways to Tackle your Debt!

There is nothing worse than worrying about money, especially if you have children or any other dependents. It can keep you awake at night, and the stress can seriously affect your health. There is no need to suffer in silence as there are various options available to you to sort out your finances once and for all.

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.

What Is A Payday Loan?

With the cost of living increasing almost daily, money can get tight sometimes. Why not get a payday loan to tide you over? If you are bit low on cash, or get an unexpected bill or expense, then a payday loan could get you out of a financially sticking situation. You can normally borrow anything up to £1000 for a period of 2 weeks to a month, so they are specially designed to give you a bit of cash until your next paycheque clears.

There are lots of different payday loan companies out there, so make sure you research the market before you commit to anything. Never borrow more money than you can afford to pay back, or you could get into debt. You can compare different companies on our website, click here to have a look.

Claims for Credit Cards

People who are thinking of claiming against their lender for credit card charges or a large debt might find it a bit trickier under new guidelines.

The OFT plans to make a matter clearer which until now was often a handy loophole: the 'original agreement' topic...

If the lender was unable to produce an original agreement document within 12 days of the borrower requesting it, the debt became unenforceable. Not bad - but now lenders are likely to be allowed to produce a 'true copy' of the document. This will suffice as evidence against the borrower.

Annoying for those who are already in the process of trying to write off their debts. But there are some things one could do: one could find a really good claims service to try and find a solution. Or one could go to the root of the matter: think carefully before taking a credit card or loan and make sure you are prepared for repayments!

If you think borrowing is not your game, there are alternatives - the prepaid card is a great way to pay without borrowing money.