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Have you ever found yourself completely overwhelmed by monthly payments on your mortgage, credit cards, taxes, bills, home improvements, and unexpected expenses? Are you tired of paying different loans on your car loan and your business loan? Maybe it is about time to take an advantage of loan consolidation, which can help you out when you are facing some financial problems or simply want to be economical and save the money you are working so hard for?
What is a debt consolidation loan?
Debt consolidation (also called loan consolidation) is a financial process during which a new loan is created by merging all your loans into one. A new interest rate is applied to the new loan in regard to your credit history and type of the new loan. The new interest loan is generally smaller than the interest rate that you would be paying on each of your loans separately. Also, minimum payment amount scheduled is usually smaller than the amounts on the separate loans. Loan consolidation debts are designed to reduce stress when it comes to your financial life and helps you pay all of your loans by paying only one lower monthly payment. It means that you can focus on reducing your debt gradually, instead of diving straight into and sinking in it.
What are other benefits of debt consolidation loans?
In addition to a lower interest rate, and only one smaller monthly payment, debt consolidation loan also offers you a chance of extending the lifetime of your loan. Furthermore, paying only one monthly payment can help you manage your finances better. Focusing on only one bill for all what you owe, can give you an idea of how much money you will need to pay for the bill and how much money you can spend elsewhere. This not only saves your precious time but helps to reduce a considerable amount of stress.
Furthermore, having only one monthly payment suggests that you do not have to be so much worried about getting a prepayment penalty as you would be if having several separate loans. Such penalties as well as late payments affect your loan negatively and you can find yourself in a bigger financial trouble as time passes by. Focusing on one monthly payment would help you develop a financial "discipline", i.e. always be sure you have enough money to pay for it.
Moreover, debt consolidation loan may be extremely good way to safe if in addition to your credit card and car loan you also have a mortgage taken out. Consolidation loan can save you a lot on the closing costs of remortgage.
Debt consolidation interest rates
As it has been already mentioned, interest rate on a debt consolidation loan is generally smaller than the one that you are currently paying lets say on your credit card and your car loan. For example if you are paying 12% on your Visa, and 6,85% on your car loan, after merging these two loans, you may expect to get a lower interest rate, depending on how much money you owe on each of the loans and what your credit history is.
Variable interest rate is usually associated with this kind of a loan, but it also depends on the fact whether your new loan is secured or not. If it is secured by collateral, you will automatically be offered a significantly lower interest rate. However, secured loan has some negative features attached to it, i.e. in case you failed to pay off the loan, your lender would have a right to take away the secured property from you.
How much could I borrow?
You could apply for any debt consolidation loan amount up to £75,000, for example £1000, £2000, £3000, £4000, £5000 loan, £6000, £7000, £8000, £9000, £10000 debt consolidation loan, £11000, £12000, £13000, £14000, £15000 loan, £16000, £17000, £18000, £19000, £20000 loan, £22000, £23000, £24000, £25000 loan, £26000, £27000, £28000, £29000, £30000, £35000, £40000, £45000, £50000, £55000, £60000, £65000, £70000, £75000, £80000, £85000, £90000, £95000, £100000.
How to apply for a debt consolidation loan?
If you want to apply for a debt consolidation loan, please fill the form on the top of the page. It is quick and easy to make an online application. Just take a few minutes to complete the form so we can get a clear view of you, your finances and your needs. Our experts will assess your situation and get back to you with no obligation debt consolidation loan quote. It is up to you to take it or not.
Loan comparison table
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