It doesn’t seem to matter whether your listening to the radio or surfing the net you can’t escape the adverts for Debt Consolidation. So what’s all the fuss about?
Let’s be really clear here as to what debt consolidation actually means. Let’s say you have assorted debts of £10,000, car payments, credit cards, overdrafts etc and you’re struggling to make the payments. Debt Consolidation allows you to bundle them all together in to just ONE loan. Good idea, well at Loans2you we think it is. Infact it’s one of the main reasons customers come to us for a loan. Is there a down side?
None so long as you accept that it’s not something you should try and repeat! Having flattened the credit cards, the store cards and the car payments and diched their nasty interest rates, CONSOLIDATE. Concentrate on paying the one lower rate loan and don’t be tempted to run up that empty credit card again. So what if you’re struggling but can’t stop spending?
Time for Debt Management. This is where you hand over the plastic to an outside company who’ll negotiate with the companies for you to find an affordable monthly payment. You pay them and they pay off the debts. This is emergency tactics only and we don’t recommend this unles you really really can’t manage. You’ll also dent your credit rating as the companies won’t want you back afterwards. You’ll also have to pay the debt management company fees for their services.
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