Skip to main content
Apply Now

Debt Information Explained  | Debt Consolidation Loans

Debt Information Explained

Debt information explained When it comes to debt, there is a huge number of myths and misconceptions circulating the internet. We explain the myths

 

It is vital to know the truth about debt because the wrong information could prevent you from dealing with it appropriately. In this blog, we’ve debunked three common myths about debt.

If you have a large amount of debt, bankruptcy is your only option

Bankruptcy should only be a last resort after you have considered all of the alternatives for clearing your debt. A debt management plan or debt consolidation loans for bad credit can help you to combine your loans into one to lower your monthly interest rate and simplify your monthly bills to make it easier for you to pay off your debt. A debt consolidation loan can reduce the number of creditors that you owe money to and boost your credit rating so that you can budget for the future more easily.

It’s OK to make minimum payments on a debt

Making minimum payments on debt is only OK if you want to remain in debt for longer than required and pay higher interest rates. Making minimum payments can prevent you from having to pay late fees but it is far better to pay your debts in full each month, or, at the very least, increase your monthly payments to a figure slightly above the minimum. For example, if you have a credit card balance of £5,000 with a £100 minimum monthly payment at a 15% interest rate, it will take you approximately 24 years to completely pay it off and you will be charged a total of over £7,000 in interest. If, however, you increase the amount you pay monthly to £125, it will take you only five years to pay off the debt completely while saving you over £5,000 in interest.

If you marry, you will take on your partner’s debt

If you decide to get married, you will not be held responsible for any of the financial obligations or debt that your partner had before you were married. You are also not legally responsible for any credit or debt products they withdraw in their own name after you get married. If you decide to open up a joint bank account, mortgage or loan, however, you will both be responsible for the debts.

If you’re interested in taking out a debt consolidation loan with a reputable provider, get in touch with our team at Debt Consolidation Loans today.

We offer Debt Consolidation Loans for homeowners.

Our team is on hand to help with number of questions you may have.

If you are struggling with debt, please visit Money Advice Service for help and advice.

We are a broker, not a lender.

Visitors also read:

Can You Inherit Parents Debt? | Debt Consolidation LoansDebtCan You Inherit Parents Debt?
July 30, 2019

Can You Inherit Parents Debt?

Parents Debt A loss in the family is emotionally taxing for everybody, let alone with the impending financial hurdles that you will face, extortionate funeral costs, for example. The last…
Christmas On A Budget TipsGuidesChristmas on a Budget Tips
December 15, 2020

Christmas on a Budget Tips

Christmas on a Budget Tips Winter is traditionally the darkest and coldest time of the year – it’s no surprise that so many of us look forward to the bright…
Ways to Save – Should You Couple Up to Cut Back on Tax?GuidesWays to Save – Should You Couple Up to Cut Back on Tax?
March 15, 2021

Ways to Save – Should You Couple Up to Cut Back on Tax?

The Daily Mail recently revealed that many couples are not staying together out of love, they’re staying together because they simply can’t afford to break up. This new generation of…
Are You Putting Up with Poor Living Conditions?DebtAre You Putting Up with Poor Living Conditions?
February 28, 2021

Are You Putting Up with Poor Living Conditions?

People in debt often have to sell their houses and move into rented accommodation. Due to the ongoing financial crisis, more and more rentals are required and greedy landlords are…
Universal Credit delays causing UK families to be burdened with extra debtDebtUniversal Credit delays causing UK families to be burdened with extra debt
July 11, 2020

Universal Credit delays causing UK families to be burdened with extra debt

Universal Credit delays causing UK families to be burdened with extra debt A damning report released this week by the National Audit Office (NAO) has highlighted that a staggering 80…
Scammers Target Pensioners | Debt Consolidation LoansPersonal FinanceScammers Target Pensioners
September 15, 2015

Scammers Target Pensioners

Scammers target pensioners The over-55s are being targeted by scammers who want to get their hands on people’s pensions now that the law has changed, Citizens Advice reported recently. In…

Leave a Reply

5 − 5 =

Close Menu