Consolidation loans
We do not view an additional loan as the
answer to clearing debt, for those individuals that do not qualify
for an alternative should look towards their creditors for
assistance. Some creditors will freeze interest payments and allow
an instalment plan for repayment of your debt, however this is
only advisable if you can definitely afford the payments per
month.
For some people, consolidating all their existing
debt into
a single loan can help a lot, but will not get you out of
debt, it will only increase your ultimate amount payable, but
give you longer to pay it over. It depends on your level of
debt, income and current repayments but lower monthly repayments
are often possible.
Consolidation may not be advisable if you have
debt over
£10,000. That’s because taking on more financial
responsibility is likely to worsen your situation, particularly
if the loan is secured on a property. An IVA
may be the best choice in this case.
Our best advice model will tell you whether or not consolidation
is a good choice in your situation. If it is genuinely the
best solution, Debts Manager will not advise you to do this,
only tell you that we are unable to help your situation.
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