wayne 18 Views
If you are struggling with debt and looking for a way out, the range of options on offer can be confusing. In some cases, a simple reshuffle of your finances is enough, but in more serious cases, you may want to consider a specific debt solution. To do that, you’ll need to speak to a […]
To do that, you’ll need to speak to a professional debt adviser, who can help you to decide which debt solution is best for you.
What a debt adviser will want to know
Before a debt adviser can recommend the most appropriate debt solution for your circumstances, they will need to know a few details about your situation. They will want to know:
- How much debt are you in?
- Can you afford your existing debt repayments?
- How much money are you left with once all your commitments (including bills and other essential costs) have been met?
- Could you cut back on any costs to make your debt repayments more affordable?
If your debt advice specialist feels it is necessary, they can then recommend a suitable debt solution.
Debt consolidation loan
A debt consolidation loan will group all of your debts into one convenient monthly payment, making your debt more manageable. It can also allow you to spread out your repayments and reduce your monthly outgoings, which can make a big difference to your ability to repay your debts.
It’s worth remembering that spreading out your debt repayments will also mean paying interest for longer, and therefore you are likely to pay more compared with a shorter repayment term. However, a low-interest consolidation loan may be able to reduce the total amount of interest you pay if you are consolidating high-interest debts, such as credit cards.
Before you take out a debt consolidation loan, you should be completely certain that you will be able to keep up with your repayments. Failing to do so could have worse consequences than if you had carried on with your original repayment agreements, since it will effectively mean you have defaulted on another debt.
Other articles you might like;