Debt Consolidation Plan (Across the UK)
Debt Consolidation UK – Citizen Debt Help
If you’ve got debt in various places, including credit cards and loans, a debt consolidation loan could help you bring it all together, potentially saving you money and making it easier to manage with a single monthly repayment.
If you are struggling to repay various debts in various places, then one of the best possible solution for you could be to opt for debt consolidation loan UK. Be it the debts under your credit cards or other loans, debt consolidation has the flexibility to bring all these together and make a single monthly repayment process. Thus, it helps you save the money and it is more convenient for you to manage as well.
Citizen Debt Help can help you thoroughly to get help with debt consolidation. This section explains you all the details related to debt consolidation loan UK.
Debt Consolidation Loan UK has been specifically planned in a way that helps you to plan a monthly repayment for your multiple debts at several places. Thus, it allows you to merge several debts and make one repayment for all. It ensures you save a lot of interests as paying separately to different creditors involve separate interests as well. Thus, under debt consolidation, a debtor borrows comparatively huge amount of money from one creditor. This money is then utilized to repay all other debts he/she owes to several creditors. You can repay various kinds of debts like the debts for credit cards, store cards or other kinds of loans.
The purpose of debt consolidation is to streamline all your debts into single monthly repayment. It becomes easier to see track as well. Be it debt consolidation Scotland or UK, you can mostly cover two types of debts:
- Secured debts – where you take the debt in lieu of an asset like home or other properties. Thus, if you fail to repay the debt, your assets will be at stake.
- Unsecured debts – the money you borrow from the creditors or the loan you take is not secured against any assets or properties
When you go for debt consolidation loan to repay both your secured and unsecured debts, you have to mortgage something. The debt consolidation loans which are granted against the home are known as the homeowner loans. You mostly have to go for secured debt consolidation loan, if you have a bad track record of credit history. Thus, secured loan is often considered as a way of debt consolidation loans with bad credit.
Whether it is better to for secured debt consolidation or not, you can consult the financial advisor to sort them out. You can easily avail the free debt advice online, to get help with debt repayment. Choosing the right option for debt repayment is vital, else you may get into certain financial complications.
Before you decide to go for debt consolidation, you should get the help from our team Citizens Advice Debt Consolidation London. Although, application for the debt consolidation loan may not appear difficult but there may be certain financial complications involved. Our team working for free debt advice online will help you decide and plan the repayment process under the debt consolidation accordingly. Thus, they will help you figure out when and how can you start consolidating debts.
A person is mostly advised to opt for debt consolidation loan UK, if he/she has multiple secured and unsecured debts lined up to be repaid separately. Then under such circumstances, debt consolidation can help the debtors to channelize all the repayments and make one single payment monthly for all the debts. Here, one creditor will lend you money to make the repayment process continues for all other debts.
Before you apply, you need to check your credit history. If you have poor credit history, you may need to secure your debt consolidation loan. The creditors will take the call based on the amount of debt you owe. They do that to avoid credit crunch specifically for those who apply for debt consolidation loans bad credit.
When you apply for debt consolidation UK, there will be certain criteria of the creditors who will lend you the money as the consolidation loan. Only if you qualify those criteria, you can go for debt consolidation loan. They will verify your credit reports and other financial details from various sources before they decide whether to lend you or not and the interest rate.
As mentioned previously, bad credit score may affect your application for the same. So, the financial advisor who will help with debt consolidation can be approached to explore ways improve your credit rate. It is always better to get an idea what will be the favorable factors to get your application approved.
Whether an individual is good to go for debt consolidation or not, it is used on the record of his credit file. When you avail the free debt advice online, our team of financial advisors will analyse your financial situation based on the amount of unsecured debt you owe and your other financial commitments. Then only, they can suggest whether your debts could be consolidated or not. You may also choose to release equity from your assets and properties like house to consolidate debts into mortgages.
When you go for debt consolidation by releasing equity, your unsecured debt will automatically get transferred to secured debts.
Usually, a credit score below 579 is considered to be poor. For debtors with ‘poor’ credit score, they may need to go for high-interest rates.
Our team of Citizens Advice Debt Consolidation London will only analysis your credit score but also other data to figure out whether the person is good to go for the loan or not. Mostly factors like job history, income and education often compensate for low or poor credit score.
Debt consolidation is mostly advisable under the following circumstances:
- No savings have been wiped out by fees and other charges.
- The person have ample financial backup to afford other payments till the period of repayment under debt consolidation continues.
- Only the rate of interest for debt consolidation loan UK is lower than the total amount of interest that was supposed to be paid separately.
Our team of financial advisors will help with debt consolidation, but you can yourself check whether this is the best option for you or not. If you are planning to consolidate your debts you can proceed through the following steps:
- Check your interest rate: Before you sign up for the process of debt consolidation, avail the free debt advice online to know your interest rate. Based on your record and amount to be repaid, the team of financial advisor will calculate the rate of interest.
- Apply and quick consolidation: Once you are clear about your rate of interest, you can go for consolidation of all your debts. You can make the application online and once your application for debt consolidation loan UK is approved, you have to sign the agreement. Finally, your consolidation process will begin.
- Lender verifies your status: Based on your credit history and the amount you need to borrow for debt consolidation, the creditor will decide whether to go for secured debts or not. Then the lender will either approve personal loan or secured debts.
- Decide your monthly repayment date: Once approved, there will be an agreement that will clearly mention the amount of monthly repayment and the date. This will be designed as per your budget.
Like various other insolvency services and debt solutions, the process of debt consolidation Scotland and UK has many pros and cons.
The advantages of having debt consolidation include:
- Having one single monthly payment: Debt consolidation ensures that all your repayment is channeled down into one monthly repayment. It also reduces the monthly repayment amount. You won’t be having multiple payment deadlines anymore.
- Reduced interest rate: Mostly the unsecured debts have very high interest rate for the repayment. But under debt consolidation, since all repayment is made into one, often the rate of interest gets lowered. Previously, different debts used to have different rate of interest.
- Better credit score: Since all your debts are consolidated into one under the debt consolidation loan UK, it also enhances your credit utilization score. Credit score usually gets lowered when one is entitled to pay multiple debts. But under debt consolidation, within a few months, there is a significant rise in the credit utilization rate and it in turns helps your credit score gets better.
- Get rid of the debt faster: If you pay your debts individually to each creditor, it may take years to get rid of all your debts. But if you avail our free debt advice online, our advisors will take multiple factors into consideration like your income, other financial commitments etc and plan the repayment accordingly within the best possible time.
- Free from stress: More the number of repayments to be paid individually for debts more will be your stress and concern. With single monthly repayment benefit, less will be your stress and your financial position will get better.
While on the other hands, there are multiple risks and drawbacks involved.
The disadvantages of a debt consolidation include:
- More interest rate: Just like there is a chance of getting interest lowered, while consolidating debts, the reverse also holds true. It may happen that while various debts are being consolidated, you may end up paying a comparatively high rate of interests.
- Home at stake under secured debt: There are various forms of debt consolidation loan UK that demands securing your home or other properties. Although, this will ensure that you pay less interest rate, but there is always a probability of your home being at stake.
- Fixed monthly repayment: If your profession is such that your income is flexible and may go down, then debt consolidation may not be a good option. In case, your income goes down on a particular month, still you have to pay the amount you signed up for debt consolidation loan UK.
- Extra fees involved: The process of debt consolidation also involves some additional fees and charges. These are the loan origination fees, balance transfer fees, closing costs and the annual fees.
If you are planning to opt for debt consolidation to repay all your debts, you can avail our device of free debt advice online. You can also call us at our Citizens Advice Phone Number UK. We have a team of highly experienced financial advisor who will help you thoroughly to plan the debt consolidation process.
We will evaluate your financial status and income and ensure you benefit from the debt consolidation plan you sign up for. So get in touch with us via sending Email at firstname.lastname@example.org or connect with our experts on citizen debt advice phone number UK 01615327813.