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- Personal finance explained
- All about secured personal loans
- How can I finance a new car?
- Personal loan finance made easy
- What are home loans?
- Is debt consolidation worthwhile?
- How can I finance my home improvements?
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Personal Finance Explained
26th SEPTEMBER 2006
Many high street lenders and internet companies now offer loans to cover all sorts of situations but how do you go about personal finance planning?
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Is Debt Consolidation Worthwhile?
26th SEPTEMBER 2006
Debt consolidation loan finance is becoming increasingly popular as a way of simplifying your personal finances but what does it actually mean?
Repay Your Expensive Debts
Debt consolidation involves taking out one loan in order to repay all your existing debts in one go. You then make just one payment a month to a new lender. The idea is that the new loan will be at a lower interest rate than some, if not all, your previous debts. For example you could pay off high interest rate credit cards, store cards, unsecured personal loans and overdrafts. Work out how much you need to cover these debts then shop around for a low rate personal loan to cover this amount. You can then set up just one direct debt from your account to repay your new loan.
Lower Monthly Payments
Your monthly payments will then be more affordable and much easier to manage. Your money will be easier to organise as you will not have to keep track of paperwork and payments to several finance institutions at different times of the month. If your new payment is at a fixed rate then you will be able to work out an accurate budget each month and take control of your finances.
A Quick Fix?
Be careful not to be tempted by offers a quick fix to all your financial problems without checking the details carefully. Some debt consolidation companies will end up costing you more as extra charges, such as expensive payment protection insurance premiums are automatically included. Always look beyond the headline interest rate and make sure you know the total cost before signing up to anything. Remember the longer the repayment period the greater the total interest you will pay. If you check the internet you will find many solutions to expensive credit card debt, so shop around and choose your best option.
Get in touch with us now, by filling out our application form, and start a free, no obligation debt consolidation consultion