If you’re struggling with credit card debt and think the chances of repaying it are low, don’t worry – a consolidation loan might be just what you need. By using the money provided, you could close your accounts and leave yourself with just one lender to pay each month. At the very least, your financial situation should be much easier to manage.
Want to find out more? Continue reading.
Credit card consolidation is where you use a loan to pay off all your lenders. Once these accounts are closed, you ought to be left with just one creditor to repay. This will be the organisation which provided the money. Once that’s done, your credit card worries could be a thing of the past.
According to statistics from The Money Charity, the average person in the UK would take more than 26 years to pay off their credit card debt – assuming they made the minimum repayments. Furthermore, this type of debt stands at around £2,600 per average household.
With so many people struggling to pay off what they owe – it’s only natural to look for a solution. After all, who wants to spend over a quarter of a century paying off debts?
Assuming you find a loan which ultimately leaves you paying off less in the long run, then consolidating credit card debt could be a very sensible solution. It’s important, therefore, to review the terms and consolidations before committing and make sure:
Your monthly payments are affordable.
You will pay a lower interest rate on the loan than on your credit card debts.
The repayment period is not excessively long.
You can read more about this in our guide ‘when is debt consolidation worth it?’. If you use our services though, we’ll keep you informed of all your options and make sure you’re getting the best deal possible.
You can use a credit card for debt consolidation but this solution can be risky. For example, many card providers will use an introductory offer of 0% interest. However, if your debts aren’t paid back in time, this solution could become extremely expensive. Ultimately, this might leave you in worse financial shape than before.
If you’re transferring multiple accounts to one credit card, providers will also probably charge you a fee for doing so. This amount varies but, again, can be costly.
If you pay off your debts within the introductory period, a credit card could be a cost-effective solution. Miss that window though and you might wish you’d chosen a loan instead.
In many situations, a consolidation loan can be the ideal way to get on top of your finances and repay credit card debt. To find out whether we can help you, get in touch and we’ll discuss your options.
If your loan is approved, you could have the money within just a few hours. By tomorrow, you could have paid off all your credit cards. Click the button below and we’ll get your application started: