Taking Out New Credit to Resolve Current Debt
Britain, as a nation, owes over £1 trillion and each of us relies on some form of borrowing or financial loan during our lives. We collect our debt from an array of outlets, such as outstanding loans, overdrafts, credit cards, or store balances. Throughout a single month, varied interest rates are subtracting from your account on varying dates.
Consolidating your debt into one single BadCreditSite loan is a useful strategy to manage your finances and reclaim oversight. Combining all debt into one product is valuable as it aids reductions of monthly repayments, allowing you to reap financial gain further down the line. You’re existing debt will not perish but instead will be more manageable and viewed from one product. BadCreditSite can bypass conventional banks and financial institutes to offer affordable rates and accept typically rejected characteristics.
How Do Debt Consolidation Loans Work?
The process of attaining a debt consolidation loan is very straightforward and easy to understand. Firstly, you will move either all or a considerable amount of you’re existing debts into one single loan product.
You will select a date in which each month a total figure will be debited from your account. By combining all debt, you can suppress various credit cards, and existing loan arrangements as your loan will eradicate the debt.
Tip: check if there are any early repayment charges on your pre-existing loans
The bottom line is, debt consolidation loans allow you to borrow capital to pay from what you already owe to lender’s and banks.
Unsecured debt consolidation loans are as literal as they sound. There is no need for a guarantor or for any assets to be held against the amount owed to the lender.
Secured debt consolidation loans allow you to borrow a higher amount and require either a signed guarantor or asset held against the debt owed. An example of an asset that may be used is a vehicle or your home.
- Popular as allows individuals to regain control of finances
- Can save a small fortune in the long-run
- Reduce overall rate you pay
- Reduce total number by combing all debt into one product
- Saves money in long-run
- Debts all viewable in one product
- One interest rate
- One payment per month (you select the date which allows more flexibility)
- Credit rating may recover
- No credit footprint with our free application form
- Stable interest rate as opposed to several
- Struggling with current debt repayments
- Scale down number of debtors
- Unify outgoings
Moving all debt may end up with a higher overall interest rate
Possibly obliged to pay early repayment charges from existing debt
However, BadCreditSite can help ensure you are paired with a lender who can offer a superior interest rate and guarantee no hidden fees or costs.
Is a Debt Consolidation Loan Right For You?
Once you have thought through all the particulars regarding a debt consolidation loan, ensure you are dealing with a viable lender that is FCA-approved. It is crucial to establish an organisation is licensed and works according to the secure FCA protocol. Discuss with your partner or loved ones about your current situation, near future and how this loan may help propel your current circumstance.
If you are struggling with current repayments with existing debt, let us know, and we can help and find a suitable financial plan.
A Debt Consolidation Loan Makes Sense If:
- An opportunity to cut spending and enhance credit rating
- Will pay less interest than were prior
- Total amount payable decreases
- Can afford upkeep of payments until loan repaid
- No personal savings eradicated by fees
Taking a Debt Consolidation Loan
Complete our online application to find the best practical lender given your situation. As long as you are over 18 years old, are a UK citizen, and have a bank account we will be able to calculate a loan that fits your criteria.