5 Ways to Make Debt Consolidation Work for You

On first impressions it may seem like quite the oxymoron but taking out a loan for debt consolidation could actually help you manage your finances. In order to acquire more money, you of course- need to earn more but its imperative to ensure that you also manage your current financial situation too.

That means cutting down on your debt and often this could be through the form of a debt management plan, debt consolidation and other debt relief schemes. Use some of our techniques to help you make huge savings and subsequently enable you to start planning for the future.

You can use loans, experts and even other techniques to save yourself money. You are not alone- look at the advice listed below and find a way to manage your debt appropriately.

What is Debt Consolidation?

But first, what exactly is debt consolidation? It is a way of streamlining your finances and rather than paying out multiple outgoings, you can settle all of your debt with one loan. Therefore, you’ll only have to pay just one debt off each month, making it easy to manage and also eradicating any rising interest rates on the horizon.

Regular payments to just one lender are a lot easier to manage. This can make it possible for you to easily make your payment on time and ultimately improve your credit rating. Paying just one lender can help you budget all of your finances.

Update Your Budget

It’s easy to bury your head in the sand and is usually the common reaction to lots of debt. When things start getting too much, it can be off-putting to even look at finances- never mind our money that is outstanding. In order to sort through and take action, you will need to write down what’s going out and what is coming in. Once you decipher through this then you can start seeing what you owe and what regular outgoings you have. This can essentially help you budget all of your money and start looking at ways to control your debt and finances in general.

Monitor Your Debt

Once you see your debt in black and white, it will help take the weight off your shoulders. The best way to be able to make your debt manageable is to start noting it all down. What dates are the payments due, what is the interest rate and when is it expected to rise? Once that is done, you can start looking at your options. We discuss some of them below, regardless on whether you have good or bad credit there will be ways in which you can take the impact out of what you owe.

Get Debt Advice

There are plenty of ways to get advice in this day and age and it is integral to use this to its fullest. Get debt advice from professionals and also seek help from those who make it their profession to enable you to escape multiple channels of debt. Start getting advice on your debt solutions and debt consolidation with National Debt Advice. There are many sites of this nature that will take over you debt and make sure you are not accumulating an unwanted interest bill.

Use an IVA

One of the gems in the finance industry has to be the IVA debt solutions; they provide relief for many who are over their head in costs. An IVA can help you get up to 85% off your debt total and they also have practitioners that deal with your lenders on your behalf. This type of action should be taken if you are in over £6000 worth of debt, as it can have a detrimental effect on your credit score in the future. It’s well worth getting advice on this type of relief and seeing if this suits you, if it is not the right choice then all is not lost as there are several ways to reduce your overall costs and outgoings.

Take Out a Loan

There are other ways to consolidate your debt- you can also take out a loan capable of covering everything you owe. This will then ensure that you can easily manage what is outstanding. You will know when you are due to pay, what the interest rate is and you can simplify the payments. It is important that this is thoroughly researched, you need to check the APR, the interest rates and how long the term of the agreement lasts.

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