If you have several debts with different providers, you’ll know how stressful it can be to juggle them. It’s all-too-easy to inadvertently miss payments or accidentally cancel a direct debit without realising the affect it could have on your credit score – or worse.
Debt consolidation loans enable people to combine all of their debt into one, simple monthly payment that’s affordable, far harder to miss and which enables them to stick to their budget while paving the way to a debt-free future.
But, what is debt consolidation?
Debt consolidation loans simply require that people take out one larger loan that is used to pay off all of their separate, existing debts. This results in one payment each month, rather than what they’ll have been used to – lots of individual direct debits and standing orders.
It’s important to remember that debt consolidation loans don’t make your debts disappear, they simply make it much easier to manage multiple debts. For most people, they’re a sensible step forward when it comes to getting back into the black.