There are lots of different factors to consider when giving the best debt advice, including how much you owe and to how many creditors, whether you own a home, what type of debt it is (eg. secured or unsecured) and much more.
We have tried to lay out in the most clear and concise manner when each kind of debt solution is most appropriate, what the advantages and disadvantages are, and how they work. We strongly recommend that you contact our experienced Debt Counsellors for expert debt advice before you make any decisions though, it's a free service and you can get in touch for free as well!
We have tried to lay out in the most clear and concise manner when each kind of debt solution is most appropriate, what the advantages and disadvantages are, and how they work. We strongly recommend that you contact our experienced Debt Counsellors for expert debt advice before you make any decisions though, it's a free service and you can get in touch for free as well!
Debt Advice 
The debt solutions that are
available include:
available include:
Debt Consolidation Advice
If you are making multiple payments to a number of different creditors then a debt consolidation loan might be the best way to reduce your payments and make it more manageable by only having one payment to make every month.However there are also a number of dangers with going down this route, for example you will still be able to rack up debt if you continue to use credit cards or take out further loans.
Get in touch with DebtAdvice.net to get free debt advice and we might be able to suggest a better option for you.
SUITABLE?
Is Debt Consolidation Your Best Option?
If you are considering getting a debt consolidation loan it will be because you have a number of different creditors and you want to be able to make one simple, monthly payment instead.
If the following situation applies to you then a debt consolidation loan may work well:
You still have a decent credit rating (if you don't then the interest rate on the consolidation loan is likely to be high),
You can afford to pay a relatively large amount towards your debts every month,
You have multiple creditors.
If any of these conditions do not apply to your financial situation, then there will probably be a better option. Get in touch with us and we'll be able to give you free debt advice and may be able to suggest a plan that will be more suitable.
If you are considering getting a debt consolidation loan it will be because you have a number of different creditors and you want to be able to make one simple, monthly payment instead.
If the following situation applies to you then a debt consolidation loan may work well:
You still have a decent credit rating (if you don't then the interest rate on the consolidation loan is likely to be high), You can afford to pay a relatively large amount towards your debts every month, You have multiple creditors.If any of these conditions do not apply to your financial situation, then there will probably be a better option. Get in touch with us and we'll be able to give you free debt advice and may be able to suggest a plan that will be more suitable.
HOW WORK?
How Do Debt Consolidation Loans Work?
The basic idea behind a debt consolidation loan is that you take out one large loan in order to pay off your multiple smaller loans.
There are a number of lenders that offer this service, and if you decide to go down this route then we can give you the details of the best ones.
Unlike other debt management plans, you will not be reducing the amount you have to pay overall. Monthly payments should come down (as long as you still have a good credit rating) however the loan will be operating over a longer period of time meaning that you will probably end up paying more over the complete term of the loan. For more information get in touch for free debt advice.
The basic idea behind a debt consolidation loan is that you take out one large loan in order to pay off your multiple smaller loans.
There are a number of lenders that offer this service, and if you decide to go down this route then we can give you the details of the best ones.
Unlike other debt management plans, you will not be reducing the amount you have to pay overall. Monthly payments should come down (as long as you still have a good credit rating) however the loan will be operating over a longer period of time meaning that you will probably end up paying more over the complete term of the loan. For more information get in touch for free debt advice.
EFFECTS?
What are the Effects of Debt Consolidation?
The main effect, of course, is that you will only have to make one payment on your debt every month instead of making multiple payments.
By making payments on these loans, your credit rating will be improved and you can continue to take out other lines of credit at the same time.
It is not recommended, however, that you do continue to use any credit cards or take out any further loans as this will nullify the effect of only having to make a single payment every month. This is also how debt problems can get out of hand. Contact us for advice on budgeting and advice on debt.
The main effect, of course, is that you will only have to make one payment on your debt every month instead of making multiple payments.
By making payments on these loans, your credit rating will be improved and you can continue to take out other lines of credit at the same time.
It is not recommended, however, that you do continue to use any credit cards or take out any further loans as this will nullify the effect of only having to make a single payment every month. This is also how debt problems can get out of hand. Contact us for advice on budgeting and advice on debt.
ADVANTAGES
Advantages of Debt Consolidation Loans
Make your debt easier to manage,
Reduce the monthly payments you have to make on debt,
Improve your credit rating.
Make your debt easier to manage, Reduce the monthly payments you have to make on debt, Improve your credit rating.DISADVANTAGES
Disadvantages of Debt Consolidation Loans
End up paying more with a longer repayment term,
Difficulty getting a consolidation loan at low interest rates if you have a bad credit history,
You can get further in to debt by continuing to spend on credit cards and by taking out loans.
End up paying more with a longer repayment term, Difficulty getting a consolidation loan at low interest rates if you have a bad credit history, You can get further in to debt by continuing to spend on credit cards and by taking out loans.Contact Us
If you're not sure whether this is the right debt solution for you, and you would like to hear about some other options then get in touch for private and confidential debt advice from our experienced Debt Counsellors.If you do decide to go down this route then we will be able to give you the details of debt consolidation loan providers that offer the best rates.