If you are currently struggling with bad credit debt and are looking to consolidate your finances and budget better in the new year taking out a debt consolidation loan might be a great solution for you and can really solve your credit problems in the long run. However there are some things you do have to consider to make sure that taking out a debt consolidation loan is not going to cause you more problems and your credit rating will not be affected.
1.Consolidating all your debt into one loan is the best option.
The more of your bad credit debt you can put on a consolidation loan the better the results will be. Therefore you need to make sure you have a clear image of your finances and have to get balances and settlement figures for your …show more content…
So the more money you can save the faster you can get rid of your bad credit debt. But you also have to get prepared for emergencies, in case something happened, you lost part of your income, you can still make the repayments on time.
4.Taking out a debt consolidation loan does not make your debt disappear
Just by taking out a consolidation loan the total amount you owe is not going to get reduced. The interest charged on it monthly might get lower and you can pay it off quicker than if you were sticking to your old credit products, but you still have the same amount of debt and you still have to work hard on eliminating it. If you are looking to reduce the amount you owe, you can go for IVA or insolvency advice, but it is going to affect your credit file much longer.
5.You still have to make repayments on time
If you have been bad with repayments so far that has to change after taking out a debt consolidation loan. You are looking to repair your bad credit as well as eliminating your debt, so you cannot afford missing payments or making payments late. You need to shift your repayments on a date each month when you are sure there is money available in your
1.Consolidating all your debt into one loan is the best option.
The more of your bad credit debt you can put on a consolidation loan the better the results will be. Therefore you need to make sure you have a clear image of your finances and have to get balances and settlement figures for your …show more content…
So the more money you can save the faster you can get rid of your bad credit debt. But you also have to get prepared for emergencies, in case something happened, you lost part of your income, you can still make the repayments on time.
4.Taking out a debt consolidation loan does not make your debt disappear
Just by taking out a consolidation loan the total amount you owe is not going to get reduced. The interest charged on it monthly might get lower and you can pay it off quicker than if you were sticking to your old credit products, but you still have the same amount of debt and you still have to work hard on eliminating it. If you are looking to reduce the amount you owe, you can go for IVA or insolvency advice, but it is going to affect your credit file much longer.
5.You still have to make repayments on time
If you have been bad with repayments so far that has to change after taking out a debt consolidation loan. You are looking to repair your bad credit as well as eliminating your debt, so you cannot afford missing payments or making payments late. You need to shift your repayments on a date each month when you are sure there is money available in your