Consolidation Debt Loans
To Debt Consolidate or not to Debt Consolidate?
Consolidation debt loans are one debt solution which many Payplan clients have tried before entering into a debt management plan or other debt solution like an IVA. Payplan clients have often found that consolidating their debts before seeking professional and free debt advice from an organisation like Payplan, failed to solve their debt problem and at worst, their debt levels increased.
Online Debt Consolidation
With the increased availability of online credit, many people struggling with monthly debt payments have used online debt consolidation by putting all their debts into one supposedly affordable payment, either by securing their debt on property or through an unsecured loan.
Debt Consolidate? – The Pros
In some circumstances, it may be sensible to debt consolidate.
- It will mean that your credit-rating won't be affected, assuming that Default Notices haven't been issued already on the debts you owe.
- It will also mean that you have a lower monthly payment to one creditor, bank or online lender.
- Your income and expenditure should help you decide what you can and cannot afford – if in doubt, contact a Payplan debt adviser.
Debt Consolidate? – The Cons
- Debt consolidation may be harder for people with poor credit-ratings, and the high rates of interest that people falling into this category are offered may not even cure the symptoms of unaffordable monthly debt repayments.
- Many people who consolidate debt are tempted to re-use their credit cards again – compounding their debt problem.
- Secured loans are often offered to people who have property with equity, and these can also prove an expensive method of debt consolidation.
Still Worried About Debt Consolidation?
If you're unsure about what to do about your debts and believe you have a debt problem, then Payplan can offer free debt advice online or you can call free on 0800 280 2816.
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