How to consolidate your debts
Think carefully before securing other debts against your home. Your home may be
repossessed if you do not keep up repayments on your mortgage.
The information below may help you understand a little more about funding home improvements.
However, if you would like to speak to one of our team to help you further, just
fill in an online enquiry
form and we'll call you right back - or call us free now on 0800 083 9640.
How can I approach debt consolidation?
There are different approaches to consolidating your debts. One way is to consolidate
your existing loan or credit card debt into one lower affordable monthly payment.
Essentially in this way you are taking out one loan to pay off all the individual
debts, so that you have only one payment to make each month. This can be the right
choice for you, as long as you remain aware that you are effectively replacing your
debt, rather than removing it. This can then make it easier to keep track of your
spending and because it is possible to get a consolidation loan at a lower rate
of interest than your current debts, you can cut your monthly payments.
It is also possible to reduce your monthly payments by consolidating your debts
into one loan which is spread over a longer period of time. It is important to be
aware that this may not reduce the total amount that you are due to repay, but if
you can reduce your monthly payments, it may still be the solution for you.
Does debt consolidation clear my debt?
No. Always remember, getting a consolidation loan means you have combined your debts,
you haven't in fact cleared them. However, debt consolidation can make the debt
more manageable. Depending on the solution you choose, you may be able to reduce
your monthly payments or the amount of interest you are paying.
When consolidating your debt, it may be possible to negotiate with your creditors,
but this can never be guaranteed. This may allow you to reduce your outstanding
repayments by agreeing on what you can afford to pay.
When should I consolidate my debts?
It is entirely your decision. First of all, it is important to understand your financial
situation and then if you decide that the benefits of debt consolidation are what
you are looking for, it could be the right option for you. If you would like to
speak to one of our team, just fill in an online
enquiry form and we'll call you right back - or call us free now on 0800
083 9640.
At Promise, our friendly team will help you find the best financial solution to
suit your individual needs.
Promise can put you back in control
Extending the loan over a longer period can reduce your monthly outgoings but may
increase the total cost of credit.