Debt Solutions: Informal Debt Consolidation
What is Loan Consolidation?
It is not unusual today for someone to find themselves in a position where they owe money to a number of different creditors. Most people looking into their wallet or purse will find multiple store cards, credit cards and catalogue account cards.
For some people, having to make multiple payments to different creditors is time consuming and inconvenient. They would prefer to consolidate all their debts into one and have just one monthly payment to worry about. Others consider the annual rate of interest charged by store cards, catalogues and credit cards to be too high to keep up with, which tends This tends to be much higher than the rate of interest charged on a personal loan by a high street bank.
A consolidation loan can be the answer to this problem. All the different card balances and even smaller loans can be paid off with the single loan. This will often offer a single monthly payment which is lower than the combined total of the different cards. The loan will normally be payable over a fixed period meaning that it is clear when the debt will be repaid in full.
That said, informal debt consolidation can be very risky if not handled properly. Click here to see why loan consolidation may not be the answer to your debt problem.
However, you will be creating a new debt and paying off your debt for longer. For example, if you owe £15,000 and normally repay this at the rate of £250/mth, you will be repaying this debt for 5 years. However, if you reduce your monthly repayments to £120/mth to fit your budget, you will be repaying your debt for at least 10 years. What’s more, even this is not a guaranteed length of time, because additional interest and charges may be added. This means that there is no light at the end of the tunnel.
Alternative solutions to debt include IVAs, Bankruptcy, Administration Orders (for debts under £5000) and an Informal Agreement.
Debt Solutions: Informal Debt Consolidation
Debt Solutions: Informal Debt Consolidation: Informal Debt Consolidation
Debt Solutions: Informal Debt Consolidation: About Loans
Debt Solutions: Informal Debt Consolidation: Debt consolidation loans: what you should know
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- Simply enter your debt details
- Wizard will tell
you which solution is best for you
Click here to try it
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