What You Need to Know About Debt Consolidation

Let’s face it, debt can be a daunting prospect. From personal loans to high-interest credit card bills, when these start building up the pressure is almost indescribable. To make matters worse, those just managing to clear these expenses at the end of the month may suffer increased strain if their job or other situation changes.

Initially, one or two debts may not seem like the biggest thing. However, once multiple interest rates start piling up, the balances on the accounts sometimes don’t seem to decline. In this situation, when debts become unmanageable, a consolidation loan could be the best way to regain control.

What is a debt consolidation loan?

A debt consolidation loan works by taking out a sum equal to, or greater than, the total of your combined debts. By paying all these off, you will only have the loan left to manage – and this can be repaid through one, affordable monthly payment.

What are the benefits of a debt consolidation loan?

There are several benefits to a debt consolidation loan. Here are the main ones you should know about:

Financial control

Tired of creditors chasing you for money you don’t have? A consolidation loan can repay your existing lenders and allow you to make one affordable payment each month. This gives you much more control over your financial situation and makes it easier to manage.

Additional cash

Another benefit of debt consolidation is that by converting your payments into one affordable lump sum, you should be better off each month. We can help give a reasonable estimation of how much you could save. Potentially, you could put this towards a treat or bank it for a rainy day.

You’re less likely to miss payments

You probably have a lender which needs to be paid by this date, followed by another which must be paid here. Also, don’t forget about those credit card and store payments! It can be challenging keeping on top of all your creditors but – as you have just one payment to manage – you should find this task much easier.

Assist your credit score

A debt consolidation loan can also assist you in improving a credit score. By making payments on time and not missing deadlines, you can start to build a payment history which looks a lot more favourable to future lenders. Eventually, you should be able to access the better rates on financial products offered through some banks and mainstream lenders.

I have bad credit. Can I get a Debt Consolidation Loan?

At Consolidation Express, we consider all financial circumstances and credit scores. While some lenders won’t provide loans to those with bad credit, this doesn’t mean you won’t get the funds you seek through us.

Can I choose which debts I consolidate?

When you receive the funds from a consolidation loan, it’s entirely up to you what you do with it. However, we would recommend that you consolidate as many debts as possible.