Archive for August 2012

Why Get a Consolidation Loan?

August 2, 2012

If you are in debt, then you know about it! It’s hard to carry on as normal when you are weighed down by big debts with multiple creditors, especially if you have dependents. It can feel like you’re losing the battle with monthly repayments, and as interest mounts up, it’s hard to even make a dent into the true amount you owe, just keeping your head above water.

If you are struggling with your debts then why not get a consolidation loan? These loans are specially designed for people with at least £1000 of debt with two or more creditors. The loan allows you to pay off all of your debts, meaning that you only owe one creditor.

The interest rates will be much lower, as well as the monthly repayment being significantly smaller than what you were paying previously. Getting approval is relatively easy, so you don’t have to worry about having too much debt.

One thing to remember is that the total amount that you will owe the loan company is not reduced, you still owe them the same amount of cash. The interest rates are lower though so it will save you money in the long run. It’s also worth noting that lower monthly payments mean that you will be in debt for longer. If the repayments are half what you were paying, it will take twice as long to pay it back.

 

Compare Consolidation Loans Here