Joint Loans for Debt Consolidation

What is a debt consolidation loan?

If you’ve got more than one debt hanging over your head, you’re not alone – it’s 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!

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!

Why debt consolidation?

  • Improve your monthly budget
    A debt consolidation loan will enable you to group all your existing borrowing and the monthly repayments are easier to manage.
  • Reduced overall repayments
    A debt consolidation loan could even save you money each month if the interest rate is less than the combined total interest of the previous loans.
  • Improved credit rating
    The simplicity of repaying a debt consolidation loan means that you are more likely to repay the debt on time every month. This will prove you to be a responsible borrower, which will have a positive effect on your credit score.

 

Are there any risks?

Joint 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.

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 debt consolidation?

  • Improve your monthly budget
    A debt consolidation loan will enable you to group all your existing borrowing and the monthly repayments are easier to manage.
  • Reduced overall repayments
    A debt consolidation loan could even save you money each month if the interest rate is less than the combined total interest of the previous loans.
  • Improved credit rating
    The simplicity of repaying a debt consolidation loan means that you are more likely to repay the debt on time every month. This will prove you to be a responsible borrower, which will have a positive effect on your credit score.