| Debt Consolidation Loan |
 What is a Debt Consolidation Loan?
A debt consolidation loan involves taking out further borrowings for the purpose of clearing off the existing credit you have. Different lenders have different rates of interest and different lending criteria; however, if you have been declined for loans recently, it is probable that further applications will yield the same result.
We’re here to help you
At Whittaker Bell we can put you in touch with several loan brokers who can look at finding you a loan to clear your debt without having to go down the personal insolvency route or having to sacrifice the equity in your property.
If you do have large debts or have missed payments, it may mean that you will have to pay a higher rate of interest or my even be prohibited from taking out further borrowings as your credit file may be impaired.
If it is impossible to take out further credit, it may be advisable to seek advice on other debt solutions such as Debt Management or an Individual Voluntary Arrangement.
Advantages of Debt Consolidation Loans
One Payment – once your other debts are cleared, you will be left with just one payment to make towards your debt.
No need for creditor contact – Because you will not be missing payments, your credit score will remain intact.
Keep Control of your Assets – unlike secured borrowing, your house cannot be repossessed if you do not keep up with payments.
Disadvantages of Debt Consolidation Loans
Subject To Status – A credit search is necessary prior to taking out further credit which will make it difficult to borrow more.
Interest – Taking out another loan with another amount of interest may mean that your total debt increases and will be paid over significantly longer term.
Robbing Peter to pay Paul – By borrowing more money, it is very easy to be sucked deeper into a cycle of credit and be forced to continue using credit cards and overdrafts to make ends meet.
For a no obligation telephone consultation, call us FREE on 0800 622 6480
Subject to status. Conditions Apply. Repaying debt over a longer period may increase the total amount to be repaid
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