Consolidate Your Loans & Relieve Yourself From Debt
Debt consolidation is a solution in which all of your debts are consolidated into one monthly repayment, owed to a single lender. You take out a new loan which covers the cost of your existing debts, and this allows you the opportunity to negotiate more favorable terms.
If you consolidate your debts, you still owe the same amount of money, but you only have to make a single monthly repayment, and this is set according to what you can afford in order to provide relief if previous debts were getting on top of you.
When Is A Consolidation Loan Appropriate?
A consolidation loan provides relief from debt, and can give you the breathing room that you need to get back on track with you repayments. This is most useful when you have debt from multiple high interest lenders, and are struggling to meet the monthly minimum repayments. Missed repayments can accumulate, and bring with them added fees and charges. This is when debt can get out of control.
It is advisable that you try to regain control of your debt with proper financial management and budgeting. Reducing lending and spending, and focusing on paying off high interest debts quickly, is the first protocol. If you are still struggling, and repayments are difficult, then debt consolidation might be the right course of action. A financial consultation will help to assess your situation to see if this is the case.
Benefits of Consolidation Loans
In the case that a debt consolidation loan is right for you, there are many benefits, and the solution can provide financial relief, and relief from the stress of your loans. Benefits include:
- Relief from multiple unaffordable repayment.
- Single monthly repayment to one lender.
- Possibility of lower interest rates.
- Repayments set on what you can afford.
- Opportunity to regain control of debt and finances.
Getting Out Of Debt Still Requires Effort
A debt consolidation loan can provide instant relief in some cases, but you should be aware that you will still owe the same amount of money, and you still have to be active in making your repayments. Missed repayments on your consolidation loan still have consequences, especially if secured against your assets.
Although debt consolidation loans allow you to get on top of your monthly repayments, it is advisable that you aim to pay back your debt quickly, so as to avoid paying more on interest over a longer period. Financial management and budgeting are highly recommended in conjunction with a deb consolidation solution.
How To Apply For Debt Consolidation
If you require relief from your debt, then a financial consultation can help to asses your situation, and recommend a solution. Free From Debt can help you to understand what solutions are available to you, and we can implement them, and obtain the best rates on consolidation loans. Contact us today to find out more.