Debt Consolidation – Single bigger loan for a Smaller Instalment

debt consolidation loan

When you switch from some to many obligations, gradually it starts acting like a mess. Soon you find yourself surrounded by many ‘what the hell’ situations. Income and outgoing balance becomes an unachievable thing. It is now time to act, as delay can be deadly as pending obligations can show the impact on your credit ratings.  Before something regretful happens. Do something.

Debt consolidation – Gather the scatter of debt

Debt consolidation is the usual solution that everyone looks forward to manage the clutter of obligations. This encapsulates all your existing debts in one single loan and in place of multiple instalments, you pay one instalment. This is greatly convenient when you are fighting hard to pay all the obligations from the limited monthly budget.

The + points of debt consolidation loans

Every product and service should have some value that is worthy enough to use and trust. Financial products are not the exception. Let us take a quick look at the positive features of debt consolidation loans.

Saves time and stress                                Halt on the interest                                  One instalment                            

Let us take these all one by one

Saves time and stress – Oh certainly it saves a lot of time. The efforts and time you spend in the arrangement for repayments of multiple debts are saved now. And because this happens the stress is destined to lessen in its intensity.

Halt on the interest – This is a HUGE relief. Recall the days when you were in a constant wrestle with not only multiple instalments but also with their fluctuating rates. Now everything is at peace, you have only one FIXED rate to pay and that too is not high.

One and Only one instalment – After the relief on the interest rates, it is great to be able to save a big amount, as now there is only one instalment. No more compromises on desires, now you can spend money for your own small wishes that remain suffocated for a long time.

What an ideal debt consolidation loan looks like?

Britons are prosperous but still many have the baggage of debts. The mere plan that debt consolidation is sure to give solution to all your problems is not enough. You should need to find an ideal deal that completely serves to your requirements.

High approval rate – You do not want to get rejected when you apply for a debt consolidation loan. This can harm your credit file with an embarrassing mark of rejection on it. Make sure the lender you choose has a reputation of high approval rate in the loan market.

Repayment plans should be personalised – One big reason to opt for debt consolidation is to lessen the burden of instalments. In that case, your new debt consolidation loan should have the borrower-friendly repayment policy. This feature is must as this is the prime reason that you take debt consolidation loan for. Some lenders can provide this facility for instance, everyday loans, Loanstore, Ocean Finance etc.

No credit check of you have a bad credit – In case the knotty debts have pushed you in bad credit situation, then make sure that the debt consolidation has the no credit check feature. Search footprints are not healthy for your finances when you are in poor credit situation.  Look online for the no credit check debt consolidation loan with bad credit.

Here, one unavoidable constraint can cross your way. If your bad credit situation is consistent, then approval can be a little difficult thing to achieve. However, the repayment capacity (if good) can compensate that.

By the way, never misinterpret that bad credit debt consolidation loans are available for very bad credit people. This is a prevalent misconception that many of the borrowers keep. Very unfortunately, if you have a very bad credit rating, then do not think that a bad credit loan can help you. For that, you have to look for choices that are available for very bad credit.

Genuine lender with no threat to security – Safety comes first, not only on road but also in finances. Whatever loan deal or lender you choose, the safety of your financial details should be ensured by the lender. Data infringement and theft are some of the dangers that exist in the lending industry. Make sure the loan choice you make is equipped with security measures. For instance, blockchain is playing a revolutionary role in safety and security of financial transactions.

 24 x 7 assistance – You don’t know when you may feel the need to get any assistance. It is better to have a round the clock support. Obviously, the online lenders are good in that but just make sure that their online chat staff is available all the time. Also, a ‘help’ number should also be there. At the very moment of need you surely do not want to listen – ‘Sorry we are open morning 7:00 to evening 9:00’.

When can you use a debt consolidation loan?

Good question! Simple answer, for the debts that have been built-up over a long time period. This is the one and only reason that people take debt consolidation for.

A word of caution

It is true that consolidating your debts can help lessen the burden of obligations. However in some cases, sometimes despite the debt consolidation you see not a big difference in your previous and current (after debt consolidation) situation. If still you are paying More or Equal to your previous total amount of repayments, then you need to give it a second thought. There are not usual chances for this but this is just the other side of the coin that you should be aware of.

Research well

It is not easy to find a lender in the first try. You may need to spend time and go deep to find an actually reliable loan lender and useful loan choice.

The mess of money is not easy to tackle if you have no self-discipline. Stay calculative, take wise financial decisions and differentiate between need and greed, then you can actually wish yourself a happy and calm life.

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