Most people know what it is like dealing with debt, yet when the problem threatens to get out of hand it is high time to take action. If you are struggling with multiple debts and are not sure where to turn, there are many options available to you.A consolidation loan could be one suitable way of dealing with multiple debts. It is wise to compare consolidation loans and lenders thoroughly before you decide on which one suits you best – there are so many factors to bear in mind, including the interest rate and terms. What are the application terms? You may need to prove your debts and present at least two separate creditors in order to qualify. Use the chart below to compare all features. If you need more detailed facts on a product, simply click on 'detail information'.
Compare Consolidation Loans
If you have multiple debts which are out of control a consolidation loan could make things easier.
How bad is your debt?
If you are in debt you should not ignore the situation because the problem will only escalate. If you have multiple debts which you cannot keep control of then there are options available to you. These options include debt management plans, consolidation loans and IVAs. You should consider your situation carefully before deciding on the one that can work best for you. With the right debt solution you could look forward to a debt free life. However, most of these debt solutions can cost more in the long run because they provide the service of organising your debts.
Consolidation Loans explained
Consolidation loans are suited to those who are struggling with multiple debts because a consolidation loan brings together all your expensive debts into a single more affordable and manageable monthly payment. These loans should work out more affordable because they usually come with a lower interest rate than the average interest rate on all you existing debt combines but this is not always the case. You could also reduce your monthly outgoings by repaying the loan over a longer period of time.
Are there disadvantages to consolidation loans?
Bear in mind that while taking out a consolidation loans can make paying back your debt a lot more manageable ultimately it will not reduce what you owe. Furthermore, the longer you take to repay the loan, the more interest you will pay overall. With this in mind consolidation loans can end up costing you more in the long run. Some would argue that you should not take out another loan on top of what you already owe because there is more of a risk of ending up in more debt. However, if you are looking for a way to reduce your monthly payments and help you manage and budget your expenses more effectively then a consolidation loan may be the right debt solution for you.
Consolidation loans do vary
It is important that you assess whether a consolidation loan is the right debt solution for you. If you do decide on a consolidation loan you need to take the time to find the right loan for you which you can do using the table above. Make sure you compare the different interest rates but also look at the other loan features. Always read the terms and conditions fully. If you have a serious debt problem then there are alternative solutions that can reduce the amount that you owe such as IVA, Debt Relief Order and Bankruptcy. If you’re considering securing a debt consolidation loan against your home, you should always look at remortgaging first, as the repayment terms will often be more favourable.
Comparing consolidation loan providersWhen researching the various consolidation loan providers on the market, you should ensure that you read the terms and conditions thoroughly before you commit to a particular lender. If you are in any doubt then seek independent financial advice.
30 April 2013
Everybody who finds it difficult to juggle with different loans should consider taking out a consolidating loan. A consolidating loan will make life considerably much easier because it will help you into a life without any debt.
10 July 2012 18:00
Over the years in order to pay for little things here and there have you now found yourself in debt to a number of different lenders? Being in a situation where you have several loans to pay off can be tricky and it can be hard to keep track of your finances and make each monthly payment on time.
27 July 2011
Which Way to Pay
It can be a real struggle keeping up with loan repayments, especially if you have a number of loans from different sources. If you are losing sleep over your finances, and feel increasingly out of control, then a consolidation loan could be the answer.