Consolidation Advantages
Due to the credit crunch, many people are finding it a struggle to deal with their personal finances. Unsecured debts, household bills and food prices all seem to be on the rise, and it is more difficult and expensive to get accepted for any form of credit.
Many are now finding that their monthly income is barely covering essential living costs, and this is before debt payments are even taken into consideration. But there are a number of financial solutions which are designed to reduce the level of financial stress by consolidating your debt into an affordable monthly payment.
Consolidation Advantages
A Debt Consolidation Loan could become an option if you have a decent credit rating, or you could choose to consolidate your debts through a no-loan alternative in the form of a debt management plan. Which ever option you go for, you should consider the consolidation advantages:- Less Financial Worries: Having multiple debts due at different times of the month can often be a financial worry, especially if you are can not afford to make the payments as they fall due.
But if you consolidate debt into one payment, you should have better control over your financial management as there is only one repayment to make which can cover all of your unsecured debt. - Reduces Your Outgoings: This is the main advantage of consolidating debt, as you reduce the amount that you pay to your unsecured creditors. The new amount will be affordable as it is based on your financial circumstances.
The additional consolidation advantage with a debt management plan is that there is a degree of flexibility. Therefore if your financial circumstances change for the worse, your plan can be altered to reflect this, whereas a debt consolidation loan is much more restrictive.
Remember that there are a number of ways you can go about debt consolidation, and it is strongly advised that you seek professional consolidation advice as there could be alternative debt solutions which you are better suited to.
Please feel free to contact Debt Consolidate on freephone 0800 0481 770 for further advice about your debt consolidation options.
LOANS MAY BE SECURED ON YOUR HOME. THINK CAREFULLY BEFORE SECURING DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR OTHER DEBTS SECURED ON IT. IF YOU ARE THINKING OF CONSOLIDATING EXISTING BORROWING YOU SHOULD BE AWARE THAT YOU MAY BE EXTENDING THE TERMS OF THE DEBT AND INCREASING THE TOTAL AMOUNT YOU REPAY.
For mortgages and re-mortgages the overall cost for comparison is 8.5% APR variable and for secured loans 14.5% APR variable. The actual rate will depend upon your circumstances. Ask for a personalised illustration. A broker fee may be payable on completion, and will depend on your circumstances. For mortgages and re-mortgages this fee is typically between 0% and 3% of the gross mortgage amount, subject to a minimum of £2,495 and a maximum of £3,995. For secured loans, the fee is typically between 0% and 10% of the loan value.
DebtConsolidate.co.uk is a trading style of Ask Finance Ltd (Registered in England and Wales. Company number 4229724), a wholly owned company of the Harrington Brooks Group Ltd. Ask Finance Ltd is licensed under the 1974 Consumer Credit Act to carry on the business of consumer credit, consumer brokerage, debt adjusting and debt counselling. Consumer Credit License No: 507130. Ask Finance Ltd is authorised and regulated by the Financial Services Authority (FSA) - FSA No: 300490 - for the provision of mortgage advice and arranging insurance.
