Debt consolidation loan – Should I get one?
When it comes to debt, there is always a solution. It doesn’t matter how much you owe or how much you can realistically afford to pay back or whether you owe it to one creditor or ten – there is always a solution.
But the longer you bury your head and don’t find the solution, the worse your problem will get. One method people use to escape debt is taking out a debt consolidation loan – but what is it and is this method suitable for you?
Debt consolidation is the act of taking out one loan to pay off existing credit. Usually, this is done to reduce the interest rate on the debt, to bring down monthly repayments or to reduce the number of creditors that money is owed to.
Debt consolidation loans are not right for everyone and it’s very important to have a clear understanding of what you are getting involved in. While they are not always a bad idea, for many it can involve extra costs, and lots of people have attempted to use this solution without 100% knowledge and it has resulted in them in deeper debt than before.
Before considering a consolidation loan, we would highly recommend you get debt advice from a professional who will be able to help you find the best solution. They will be able to look at your circumstances and provide you with a clear path to debt freedom.
If you would like to discuss your situation with Clive, please call him on: 01656 661426 or click here to contact him.