Taking out a personal loan can be an effective way of managing debt consolidation. Find everything you need to know about debt consolidation loans to get started clearing your debts.
If you’re juggling multiple debts – or even just a few outstanding balances – debt consolidation can be a simple solution to streamline your finances. It could also see you pocket savings on interest charges and regular repayments.
Debt consolidation means just one repayment
Debt consolidation refers to the process of replacing a number of different loans or credit card balances with a single loan. It may sound complicated but it’s really very easy, and there are good reasons to consider a personal debt consolidation loan if you have more than one debt.
Part of the appeal of debt consolidation is the opportunity for streamlined money management. Instead of managing a variety of different repayments each month, you have just one monthly repayment to plan for. It’s so much easier to stay on top of a single repayment, and it eliminates the need to regularly check that you have sufficient funds available to cover all your different repayments.
Consolidation loans can deliver savings
Debt consolidation isn’t just about convenience.
Personal loan rates are often lower than for other types of debt – especially credit card balances. This provides opportunities to save on interest charges, with the potential to lower your overall monthly repayments and free up extra cash.
As personal consolidation loans come with a set term, you also have a clear date to know when your loan will be fully paid out.
What are consolidation loans?
Personal loans are a useful tool for debt consolidation. They are quick and easy to organise, and when the loan funds are deposited into your account, simply use the cash to pay off your other debts. Then skip the hassle of multiple repayments and enjoy the ease of making just one monthly repayment. Each payment chips away the loan balance, so that at the end of your preferred term, the balance reaches zero.
The trick is knowing which personal loan is right for you.
With access to multiple lenders, your Mortgage Choice can help you select the consolidation loan that’s right for your needs.
For more information on how personal loans can help you get ahead with your money, click here.