Debt Consolidation - Should You Go for It?
Mortgage loan, credit card loan, holiday loan, personal loan...
and so on.
The list of loans most of you have borrowed goes something like this.
You keep signing cheques every month for the numerous lenders you have borrowed from and keep cursing yourselves for your spending habits.
'What is the solution?', you ask.
Well, the solution is a debt consolidation loan.
But since the loans borrowed by different people have different interest rates and different repayment terms, a debt consolidation loan may not be the best solution for every one of you.
Let us check who can benefit by procuring a debt consolidation loan and who cannot.
Those of you who have taken long-term loans and have not even crossed the halfway stage of your repayment term, should not go for debt consolidation.
Most of your creditors will charge early redemption penalty if you do, and you will end up paying up a huge amount before you can actually consolidate your loans.
The early redemption penalty is especially high for long-term mortgage loans.
If your debts merely consist of credit card dues, you can go for debt consolidation.
Most of the credit card companies nowadays are charging low interest rates.
So if you are coughing up more than 15% interest on your several credit cards, taking out another credit card which charges lower interest rates will be a nice option.
Your double figure interest rate might come down to single-digit one.
Another way to consolidate your credit card loans is go for conventional debt consolidation loan products from banks and financial institutions Some of the online sites offering unsecured and secured debt consolidation loan.
the prospective borrowers in calculating how the new loan could save them a lot of money.
If you are really interested in consolidating your credit card dues, visit one of these sites and apply online after the calculation is over.
Those of you whose loans do not merely consist of credit card dues but include several other types of loans as well, can also go for debt consolidation.
However, you have to check whether you actually qualify for a debt consolidation loan.
Remember that an adverse credit record or reluctance on your part to offer a collateral could result in refusal.
Though unsecured debt consolidation loans (with higher interest rates) are available with some lenders in UK, it is safer option to apply for secured debt consolidation loan The security turns the loan into a low-risk product for the lender and he can afford to offer you the loan on easy terms and conditions.
The interest rates will be lower and as a result your monthly payment too will come down considerably.
Since there are hundreds of lenders in the UK loan market, choosing the right lender and the right deal can be difficult.
You should calculate the interest rates, the monthly payments, etc before applying for an unsecured or secured debt consolidation loan.
In case you are not able to calculate and decide yourself, please take the services of a financial expert who will help you make the right choice.
and so on.
The list of loans most of you have borrowed goes something like this.
You keep signing cheques every month for the numerous lenders you have borrowed from and keep cursing yourselves for your spending habits.
'What is the solution?', you ask.
Well, the solution is a debt consolidation loan.
But since the loans borrowed by different people have different interest rates and different repayment terms, a debt consolidation loan may not be the best solution for every one of you.
Let us check who can benefit by procuring a debt consolidation loan and who cannot.
Those of you who have taken long-term loans and have not even crossed the halfway stage of your repayment term, should not go for debt consolidation.
Most of your creditors will charge early redemption penalty if you do, and you will end up paying up a huge amount before you can actually consolidate your loans.
The early redemption penalty is especially high for long-term mortgage loans.
If your debts merely consist of credit card dues, you can go for debt consolidation.
Most of the credit card companies nowadays are charging low interest rates.
So if you are coughing up more than 15% interest on your several credit cards, taking out another credit card which charges lower interest rates will be a nice option.
Your double figure interest rate might come down to single-digit one.
Another way to consolidate your credit card loans is go for conventional debt consolidation loan products from banks and financial institutions Some of the online sites offering unsecured and secured debt consolidation loan.
the prospective borrowers in calculating how the new loan could save them a lot of money.
If you are really interested in consolidating your credit card dues, visit one of these sites and apply online after the calculation is over.
Those of you whose loans do not merely consist of credit card dues but include several other types of loans as well, can also go for debt consolidation.
However, you have to check whether you actually qualify for a debt consolidation loan.
Remember that an adverse credit record or reluctance on your part to offer a collateral could result in refusal.
Though unsecured debt consolidation loans (with higher interest rates) are available with some lenders in UK, it is safer option to apply for secured debt consolidation loan The security turns the loan into a low-risk product for the lender and he can afford to offer you the loan on easy terms and conditions.
The interest rates will be lower and as a result your monthly payment too will come down considerably.
Since there are hundreds of lenders in the UK loan market, choosing the right lender and the right deal can be difficult.
You should calculate the interest rates, the monthly payments, etc before applying for an unsecured or secured debt consolidation loan.
In case you are not able to calculate and decide yourself, please take the services of a financial expert who will help you make the right choice.
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