We will help you search for a loan that offers the lowest interest rates and make sure you can afford the repayments.
We all know how easy it is to become swamped with credit card bills, Loans and store cards. Whether you are a homeowner or a tenant, Debt Advice Online have access to a large panel of lenders who specialise in finding the best consolidation Loan for you where you can clear all your existing debt into one new monthly repaymentSo, how does a Debt Consolidation Loan work?
Lenders make profit by lending money over a period of time and charging interest to the borrower for doing so. The larger the amount of money, and the longer the period of time, the more profit the lenders make. Hence a large consolidation loan (say £15,000), paid off over a number of years (say five or ten) is an attractive proposition to a lender as they will be able to earn a significant amount of interest.
In return for this commitment, they can offer a lower interest rate (e.g. 8.9%) than for example a credit card (e.g. 17.9%). This lower interest rate, combined with a longer repayment period means that the monthly payments of one consolidation loan can be significantly lower than the combined monthly payments on a number of smaller credit card debts and loans.
If a Debt Consolidation Loan isnt suitable for yourself then we shall consider all other alternatives. If you cannot meet your current repayments, but you can afford to pay at least £100 per month then a Debt Help Plan will be right for you.
Debt Advice Online is committed to finding the right debt solutions for you. We have a great deal of experience and knowledge of all the Debt Help solutions available and we can confidently recommend the right Debt Help for you. If there are other options available to you we will advise you accordingly.
What are the advantages and the disadvantages of a Debt Help Plan?
The key advantages of a Debt Help Plan are that you pay one lower monthly payment from your bank to Debt Advice Online. Another advantage is that the hassle of communicating with all of your creditors is handled by Debt Advice Online for you. We also will attempt to have the interest payments frozen on your loans, credit cards and store cards. You will only ever pay to your creditors what is considered to be affordable once your essential living costs have been taken into account. This way, you should always be able to pay your essential living costs first.
Debt Help is probably not for you if your debts are likely to be higher than £15,000. If this is the case then you may want to consider applying for an IVA. You can find out more about IVA’s here.
Debt Help can have an adverse affect on your credit record. Also it will take longer to pay back your credit due to the fact that you are paying less back to your creditors each month.
If you are looking for a loan for any other purpose such as home improvements or a wedding loan etc, then we can help. Whatever you want a loan and need to borrow then we can help find the right solution for you
