Multiple Loans into One Payment

If you have different debts with a number of different lenders, you may quickly find that you struggle to keep up with your repayments. This can easily become a very stressful scenario – as you battle to keep up with store cards, credit cards, and any other personal loans that you have taken out.

In some cases, there may be a simpler solution to streamline your finances, which entails merging multiple loans into one payment. This is often called ‘debt consolidation’ and means that you borrow enough money to repay all of your existing debts. Rather than having countless bills all going out throughout the month, you end up simply making a single monthly payment back to one lender. You can arrange for this debt to be repaid over a specific length of time, and the interest rate may also be lower than expensive credit cards or existing personal loans. This kind of debt consolidation can provide a simple solution to lowering your monthly payments, and reduces the confusion of dealing with lots of different financial providers. Read more to learn about multiple debt consolidation loans.

The different types of debt consolidation loans

The most common type of debt consolidation loan is a secured loan. This means that the amount that you have borrowed will be secured against an asset that you own. This usually means that the debt is secured against you home – which is why it is sometimes referred to as a homeowner loan. It is important to be aware that if you miss your repayments, your home may be at risk.

However, if you are able to make the necessary repayments, a secured loan can provide a very good way to help get your finances back on a steady footing. This is particularly the case if you owe a lot of money, or if you have a poor credit history. The fact that the loan is secured against your home means that lenders will be more willing to lend to you, even if you have previously had a poor credit rating.

When should you consolidate your loans?

Before you consider any type of finance, it is important to make sure that you are able to reliably make the repayments. If you try to borrow more than you can comfortably afford to repay, then this can quickly escalate and cause problems. Hence, before you submit your multiple loan applications, you must consider the details and terms that come along with it. Many people find themselves in this kind of debt spiral, when they use multiple credit cards and store cards, as well as using personal or payday loans. Consolidating your debt makes sense if it provides you with a saving each month.

If you choose to consolidate your debts into one lower monthly repayment, it is a good opportunity to also carefully consider how the rest of your finances are working. Look for other ways to save money, and cut your spending – to help you get back on track as quickly as possible.

What do I need to be aware of?

As with any loan, you should consider the long term implications that come along with multiple debt consolidation loans. Make sure that you carefully read the terms and conditions, and that you understand what you are expected to repay each month. Familiarise yourself with the fees and charges associated with the debt consolidation – and factor in whether there are any costs associated with early repayment of your existing debt, so you can be sure how much money you are saving.

Managed carefully, debt consolidation loans can generally be a very good way to help you get your debt and spending under control. They can reduce your reliance on credit cards, and help you to more clearly understand where your money is going each month.

Importance of the Debt Consolidation Loan

Debt consolidation loans are a suitable option for consolidating multiple loans into one payment. Having a single debt is much easier to manage than multiple debts and, therefore, makes repayments more straightforward. If you are unsure if a consolidation loan is right for you, contact the experts at Debt Consolidation Loans, who will be able to advise you on the right choice for you. Get all your doubts cleared about multiple personal loans or any other type of consolidation loan.

Debt consolidation of multiple debts into a single payment allows you to Start again

This ability to restart with your finances is a good one. Without the stress of lots of small outstanding credit balances, letters from credit companies, and the threat of late payment charges, you can make a fresh start with debt consolidation married couples loan. All you need to do is meet the regular monthly payment at the affordable rate that is set within the term of your debt loan. This can take a lot of stress away from families who are in debt and allow them to get back on track with their finances.

Easy to apply for

These type of debt loans that families turn to are usually relatively quick and easy to apply for. Filling out the multiple loan applications and getting approval can be much quicker than you can think. You don’t need to provide lots of complex paperwork and a debt adviser can work through the information that the lender you choose will need. Your lender will carry out a credit check on you and your partner to check that you are in line with their acceptance criteria. There are lots of ways to improve your credit score and to maximise your chances of getting this type of loan, but it’s good to know that most consolidation loan providers will offer loan products to customers with less strong credit ratings.

They are popular

Debt consolidation loans are an increasingly popular way of handling problem debt and to stop it from spiralling out of control. They allow people to feel confident with their money again and remove the stress of creditor letters. Debt consolidation loans also help many people from falling further into debt and they allow people to start budgeting and feeling responsible for their money. Even better, they are lent by businesses with specific expertise in the field and excellent customer service. This means that applicants can feel that they are being supported and given a trustworthy finance product that will meet their needs. Contact us to find out more.

We offer Debt consolidation loans. If you have serious money worries and want some impartial advice, please contact the money advice service

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 such as what happens if I apply for multiple loans and more doubts that you might have about a debt consolidation loan – just call us today.

Why think about Consolidating Multiple Loans into One Payment?

  • Make progress by improving your monthly budgeting
    Paying just one loan repayment will help you to manage your personal budget every month.
  • Reduced the total amount you repay
    If your loan interest rate is less than the combined total interest of the previous loans, you will pay less overall.
  • A better credit score
    If you prove that you are a responsible borrower by paying off your loan in full, it will have a positive effect on your credit score.