Unsecured Debt Consolidation Loans

Unsecured Debt Consolidation Loans

What is Debt Consolidation?

We may find out that we have borrowed money from our families, friends, family members, or store cards. Soon, we are overwhelmed with debts and have many repayments to manage. This can be stressful.

A debt consolidation loan is a loan that consolidates all of your smaller debts and then pays them off using one loan product: a debt consolidation loan.

You can often save interest by only having one loan. This allows you to focus on repaying one loan and hopefully helps you get out faster.

A debt consolidation loan comes with a fixed end date. This means that you will know when the loan will be paid off. You are less likely to miss a loan repayment, which helps protect your credit score. A good credit score is essential for obtaining finance approval and obtaining a competitive rate of interest.

One of the best parts about getting a consolidation loan for debt is its simplicity

  • Take back control. You can take back control over your financial future
  • Simplify Payments. So, you only have one monthly loan repayment. It has a fixed date, so you know when your debt will end.
  • Increase Budgeting. So, you can budget more effectively, your repayments will be fixed
  • Potentially Lower Your Interest Bill. The interest rate charged is usually lower than what you pay currently, particularly for credit cards.
  • Pay it off quicker. There is no interest penalty in most cases for early repayment. If you need to pay it off sooner, you can.
  • Protect your credit rating. You are less likely than with multiple payments to miss a repayment.

What security do I need?

It’s unlikely that security will be required if you meet the credit requirements. This is known as an Unsecured personal loan. If security is important, we may be able to use a car. This is known as a “protected vehicle”-Secured personal loan.

What is the maximum amount I can borrow?

Your circumstances will determine how much money you can borrow. You will need to know how much money you have available and what you can afford.

 

Tags

payments on time
credit inquiry
credit report
loan offers
save money
check your rate
credit profiles
existing debt
consolidate debt
improve your credit score
repayment terms
lowest rates
payment history
card balances
business day
paying off your debt
36 month
credit history
fixed rate

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