Joint Loans for Debt Consolidation

Joint Loans for Debt consolidation – If you’ve got more than one debt hanging over your head, you’re not alone.

It is extremely common for people to have balances on multiple credit cards, store cards, or personal loans.

Debt isn’t all bad, but it can turn sour if you have so many repayments to keep on top of that you miss payments. A debt consolidation loan solves this problem by combining all of your debts into one manageable monthly payment. Simple!

We offer the best consolidation loans 2020 to tackle your finance hassle smoothly.

What is a joint loan?

If you have partner, close family member or friend who is happy to apply for a loan with you, it could be the best way to solve the problem of a poor credit score.

By combining your situations, credit history, income and circumstances, you’ll stand a better chance of gaining a debt consolidation loan if other lenders have refused to give you them in your sole name.

Applications are assessed on both your credit scores and incomes. If accepted, you will then be required to sign the agreement together.

How could a join debt consolidation loan help me?

There are three main benefits to taking out a joint debt consolidation loan – beyond the fact you’ll stand the best chance of being accepted if you have poor credit.

Firstly, you’ll enjoy a fixed interest rate for the period of the loan – no changes. Ever.

Secondly, you’ll only have one monthly payment to take into account. That won’t change either, and it’ll be taken on the same day of each month.

Lastly, you’ll avoid the risks of a missed payment, which is easy to encounter when you have several debts with their own repayments and dates for collection. And that means you won’t fall into arrears!

What else should you know before taking out a joint debt consolidation loan?

Key Facts About Joint Debt Consolidation Loans:

These are joint loans between partners, but they don’t need to be between married individuals. Anyone can take out a joint debt consolidation loan with you if they are in a similar position and keen to consolidate loans to a better rate. This type of loan product can make it easier for you to gain acceptance from lenders because there are two applicants named on the loan product and jointly responsible for its repayment.

These are specialist loans, designed to pay off various other smaller credit balances. Different companies offer them with different interest rates plus varying terms and conditions. It’s important to read the Ts and Cs carefully to ensure that you pick the right joint debt consolidation loan for your needs. Above all, make sure that you can afford the monthly repayments. If necessary adjust the loan term so that you are repaying a more affordable amount each month, noting that this will increase the total amount that you repay overall.

Any type of debt consolidation loan should be taken out carefully and with thought and planning. These types of loan are like any other credit arrangement. You must stick to the terms of the credit arrangement or you will find yourself facing higher fees, late repayment charges and even court action. Where possible always seek advice about your financial situation and do a budget beforehand so that you are sure about the amount you can afford to repay every month. This will help you to choose the right financial product for your debt needs. A good adviser will be able to tell you which type of debt management product or programme is right for you.

Joint consolidation loans are a good way to get back onto a sure footing with your finances. With your smaller credit balances paid off and replaced by a single affordable loan, you can start to budget and manage your money for the longer-term, building up a savings safety net and seeking to avoid problematic debt in the future.

If you are facing serious money issues and want some impartial free advice the money advice service can help.

Why condense all your debts into one loan?

  • It will improve your financial budgeting each month
    You can group all your borrowing into one monthly repayment, which is easier to manage.  So choose the best consolidation loans of 2020 now!
  • Reduce your overall repayment costs
    A loan could actually help you to avoid paying more money each month if the interest rate is less than the combined total interest of all your debts.
  • A better personal credit score
    You are more likely to repay one loan payment on time every month, rather than many confusing payments across the month. This will then prove that you are a responsible borrower, which will eventually improve your credit score.

 

Are there any risks?

Joint debt consolidation loans aren’t for everyone. It’s important to bear in mind that, because you’re both signing the agreement, you’re equally responsible for repaying the loan. If payments are missed or you stop paying before the end of the agreed term, both of your credit scores could be affected. Hence, make sure to assess the risks involved before applying for debt consolidation with default.

Entering into a financial agreement of any kind with a family member – no matter how close you are – is always a big deal, therefore it pays to have an in-depth chat about the idea beforehand so you can both make an informed decision.

Contact us today

We’d love to help you move towards a debt free future. Our friendly team will offer no-obligation advice and answer any questions you might have about joint debt consolidation loans – just call us today.

Why condense all your debts into one loan?

  • It will improve your financial budgeting each month
    You can group all your borrowing into one monthly repayment, which is easier to manage.
  • Reduce your overall repayment costs
    A loan could actually help you to avoid paying more money each month if the interest rate is less than the combined total interest of all your debts.
  • A better personal credit score
    You are more likely to repay one loan payment on time every month, rather than many confusing payments across the month. This will then prove that you are a responsible borrower, which will eventually improve your credit score.