If you are thinking about debt consolidation, you will need to know the exact extent of all your debts in the first instance. You may well find that you have debts all over the place, for car finance, loans, credit cards and store cards. Once you have taken time to evaluate the true extent of all your debts, compared interest rates and found settlement figures, you will then be able to look for a suitable debt consolidation product to consolidate your debt with.
There are many factors to consider when choosing the right product for debt consolidation, but the key point to consider is personal need. We offer many debt consolidation products and services ranging from secured loans to IVA’s. Each section is designed to inform and guide you on choosing the right service for you.
Debt Consolidation Options:
Two options are available for you to consider, if you have numerous creditors and are struggling with your debts is either a ‘Debt Management Plan’ (DMP) or for serious debt consolidation an ‘Individual Voluntary Arrangement’ (IVA). A debt management plan is an effective way to help people struggling with un-secured debt become debt free. Usually if a person is in debt they will probably owe money to many creditors. Debt management is designed to help people reduce their overall repayments back to their creditors. This is achieved by spreading the payments over a longer period of time, thus making them much more manageable, an IVA on the other-hand works in a similar kind of way but is designed specifically for serious debt problems. If you believe that a debt management plan or an IVA is the right product for you and you would like more information please visit our debt management and IVA sections.
Another option is to consolidate all of your debts by borrowing money through a debt consolidation loan to pay off all of your individual debts, so that you have only one payment to make each month. Apart from making it easier to keep track of your spending, you can often save money by getting a debt consolidation loan at a much lower rate of interest than your current debts are costing you. Getting a debt consolidation loan only means you have amalgamated your debts, you haven’t actually cleared them off yet. Be well aware that a debt consolidation loan may well help you manage your money better but until it’s paid off, you will still be in debt to the loan company. If you believe that a debt consolidation loan is the right product for you, we recommend trying your own bank first for assistance.