One of the most popular thoughts people have when they are struggling financially is to consolidate debt into one monthly loan repayment. This involves taking a number of loans and credit agreements and merging them into one payment, with one rate of interest.
It makes the debts easier to manage and understand, with one interest payment and one amount leaving your bank every month. These loans still exist and it is possible to still get a consolidation loan, although it was far easier before the credit crunch.
The chances are that consolidation loans will want you to have a good credit rating, so you can get a lower rate of interest.
Debt Support Trust and our friendly advisors can help navigate you through your options. You can speak to us on 0800 085 0226.
Struggling to get a Consolidation Loan
If you are unable to get a consolidation loan then you may have to think about other solutions. Every time you apply for a loan it will leave a mark on your credit file, and the more you apply the less likely you are that a lender will give you the money.
You can get debt help to become debt free from Debt Support Trust. This involves considering your debt level, monthly income, your expenditure and any assets you own.
We can assist you with advice on how to apply for the loan and ensure your credit file is as accurate as possible. If the consolidation loan isn’t applicable for you, because the debt is too large or because your credit file has got too many defaults, then we can look at other debt solutions which work similarly to the debt consolidation loan.
Alternatives to Debt Consolidation
If you can’t receive a debt consolidation loan then then next step is to consider debt solutions. There are similar benefits to the consolidation loan and some debt solutions. For instance, a debt management plan will allow you to pay one affordable payment each month to one company.
A Trust Deed or IVA would help you to repay what you could afford over a fixed period of time and write off the debt you can’t afford to repay. You could also consider bankruptcy too.
There are pros and cons to the debt solutions and one of the negatives is that each debt solution will leave a default on your credit file, whereas a loan would not.
If you want to discuss your debt options then Debt Support Trust can talk through all of your options, providing the positives and negatives, for you to consider. You can call 0800 085 0226 to get information about consolidation loans or debt advice.