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Can a Debt Consolidation Loan Get my Finances on Track?

Figuring out how to pay multiple debts can be exhausting. From the daily expenses to repaying loans, this can get even worse when trying to ensure you have enough funds by the end of the month.

If you are in this situation and need a solution for managing your finances, then it might be time to consider debt consolidation.

How does debt consolidation work?

Once a debt consolidation loan has been approved, you’ll be able to pay off your existing debts while making only one monthly payment. This can be a great solution as it provides some much-needed financial structure.

The first step, traditionally, is to find out what your credit score is. You can do this through a service such as Experian. If your credit score is rated as good, then the chances of your loan being approved increase. However, this isn’t to say that a bad rating will completely bar you from debt consolidation. Here, all scores are considered.

How does it make my finances more manageable?

Making sure multiple lenders get paid on time can be a challenge to say the least. By taking all these accounts, settling them, and then just focusing on repaying the loan, you could make budgeting so much easier.

Debt consolidation pros and cons

It’s worth noting that debt consolidation is not the same as many debt solutions out there. Although funds will not be written off, it can be a great option if you want the feeling of settling accounts in-full on your terms.

As well as making finances much easier to manage, debt consolidation has the following benefits:

  • By paying off your accounts, you stop calls and chasers from your existing creditors;

  • You may end up paying less interest on your loan than from all your current accounts;

  • Ultimately, by making the payments on the loan, your credit score should improve.

Generally, there is only one disadvantage when it comes to debt consolidation. Potentially, you may end up paying more in interest – and across a longer period – than you would otherwise have done. The good news is, during the application stage, we’ll strive to make sure this doesn’t happen. Alternatively, we might identify a solution which could be better for your needs.

Finally, as this is a loan, you may be at risk of legal action if you fail to make the monthly repayments.

Find out more about debt consolidation here

Over the years, we’ve helped thousands of people consolidate their debts. As a result, we’ve heard every story and listened to every situation. If you want us to help you, then get in touch.

If your loan is approved, you could have the money you need in about two hours!

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