Debt Consolidation allows you to consolidate your existing unsecured debt, such as your credit cards. Debt Consolidation means that you use one loan to pay off various credit cards, which will leave you with only one payment to make.
Credit card debt can often be the biggest cause of our financial headaches. If you realise that your credit card debt is now out of control, then you may want to look for ways to consolidate your credit card debt.
Many people go through the consolidation route as the first step to tackling their credit card debt. Once you have effectively consolidated your credit card debt then you may find that your monthly debt payments decrease and that you can become free of your credit card debt in the long-term.
There are a number of ways to consolidate your credit card debt; the right debt solution is often dependant on a number of different factors, such as your level of income and amount of debt. See below for the two easy ways to consolidate your credit card debt:
1. Debt Management Plan.
The main idea of consolidating your debt is that your payments become easier to manage and a debt management plan offers you this option, without the need for any further borrowing. This type of no loan debt consolidation allows you to make lower payments to your creditors that you can afford.
Although each case is unique and cannot be guaranteed, many creditors are willing to freeze interest and charges on the debt. If you have debts over £12,000 then you might find that an IVA is a better way to go about consolidating your debt into a lower payment as you can write off a percentage of your debt on completion of the agreement.
2: Debt Consolidation Loan
A Debt Management Plan is not suitable for everyone and you may prefer a debt consolidation loan to help you to consolidate multiple unsecured debts into one low single monthly payment. Many people also choose a debt consolidation loan as it may offer them a lower interest rate than with their unsecured debt.
Not everyone is eligible for this type of debt consolidation as the loan is often secured against your property. Although this can offer some additional advantages, if you fail to make the payments then your home is at risk.
There are many reasons that you might want to consolidate your credit card debt with a Debt Consolidation loan. For example:
For more information about how to consolidate credit card debt, please call our specialist debt consolidation advisors on our freephone number: 0800 048 3674.
If any of the above ways to consolidate credit card debt seem of interest then you should take the first step about getting information about your finances. Debt Consolidation are on hand to offer you free advice about any debt consolidation tips that you need.
Call the Debt Consolidation team on freephone 0800 048 3674 or fill out the Quick Enquiry Form to the right for a free callback.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. IF YOU ARE THINKING OF CONSOLIDATING EXISTING BORROWING YOU SHOULD BE AWARE THAT YOU MAY BE EXTENDING THE TERM OF DEBT AND INCREASING THE TOTAL AMOUNT YOU REPAY.
For mortgages and re-mortgages the overall cost for comparison is 8.5% APR variable and for secured loans 14.5% APR variable. The actual rate will depend upon your circumstances. Ask for a personalised illustration. A broker fee may be payable on completion, and will depend on your circumstances. For mortgages and re-mortgages this fee is typically between 0% and 3% of the gross mortgage amount, subject to a minimum of £2,495 and a maximum of £3,995. For secured loans, the fee is typically between 0% and 10% of the loan value.
DebtConsolidation.co.uk is a trading name of Ask Finance Ltd which is registered in England and Wales (company number 4229724), Jackson House, Sibson Rd, Sale, Manchester, M33 7RR. Ask Finance is licensed under the 1974 consumer credit act to carry on the business of consumer credit, consumer brokerage, debt adjusting and debt counselling. Consumer Credit License No: 507130. Ask Finance is authorised and regulated by the Financial Services Authority (FSA) - FSA No: 300490 - for the provision of mortgage advice and arranging insurance.