What Are The Alternatives To Low Interest Debt Consolidation Loans?
While a low interest loan can be a useful way to consolidate your debts, there are a few other options that you may want to consider.
A secured loan usually allows you to borrow a large amount, and you may be able to repay over a long time frame. However, a secured loan will need to be secured against a high value asset, such as your home or car. This means that if you cannot keep up with repayments, you risk losing your asset, so you should only consider this option if you are confident about making repayments. As there is less of a risk for the lender, you may find that the interest rates offered on secured loans are reasonable.
Balance Transfer Credit Card
If you have debts across a number of credit cards or store cards, they can be moved to a balance transfer card for easy management. If you choose a 0% balance transfer credit card, you may not have to pay interest on your debt for several months, which can save you money and help to clear your debt quickly. However, some balance transfer credit cards may come with a fee based on the amount you transfer, so review the fine print before you apply.
Release Equity From Your Home
Another option is a debt consolidation remortgage and releasing equity from your property. It is usually better to do this if your existing mortgage deal is coming to an end, otherwise you may have to pay an early repayment fee. Providing your property’s value has increased, you could take out a new, larger mortgage and use some of the equity to pay off other debts. However, bear in mind that the size of your mortgage loan will increase, so your monthly payments might also go up, even if you secure a mortgage with low interest rates.
If you need any more help with finding a suitable alternative to low interest debt consolidation, or advice on low interest debt consolidation loans for bad credit options, please seek impartial support from the Money Advice Service.
Choose Us For Your Consolidation
At Debt Consolidation Loans, we make our lending decisions with a human approach, rather than relying on automated software. We hold our applicants’ best interests at heart, and personally review each application for affordability and to understand our customers’ needs. We consider all applications and will do everything we can to ensure you can make repayments. This means that we are able to offer help to people from a range of financial situations, and provide low interest debt consolidation loans for bad credit. However, if we felt that you would struggle to make repayments, we would need to decline your application for your own wellbeing.
We aim to offer flexibility in our repayment plans, and with our easy loans, you will be able to make payments on a pre-agreed date each month that works with your budget. This can help you to manage your finances, as well as give you peace of mind. We are also completely transparent, so our soft search will not damage your credit rating and there are no fees for using our service.
If you would like any more information, you may find what you’re looking for in our FAQs, or you’re welcome to contact us. When you’re ready, it’s quick and easy to apply on our website.