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What is Debt Consolidation? & How it help us to get rid of debts?

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  • What is Debt Consolidation? & How it help us to get rid of debts?

    Debt Consolidation means taking a new loan to pay off a number of existing debts, generally unsecured ones. In Debt consolidation, your multiple debts are combined into a single, large set of debt, usually with more comfortable payoff terms. Here in comfortable payoff terms include a lower interest rate or lower monthly payment.

    Debtors can use debt consolidation as a tool to deal with credit card debt, student loan debt and many other types of debts.

    There are two broad types of debt consolidation loans:

    1. Secured loans are provided to the borrowers by keeping an asset as collateral like a house, car, etc.

    2. Unsecured loans are issued to the borrowers as debt consolidation loans are not backed by assets and can be more difficult to obtain. They also tend to have higher interest rates and lower qualifying amounts.

    Advantages of debt consolidation loans:

    Debt consolidation loans are most helpful for people who are having the below things

    1. Having multiple debts
    2. Owing £10,000 or more
    3. Receiving frequent calls or letter from collection agencies
    4. Having the accounts with high-interest rates or monthly payments
    5. Facing difficulty in making payments
    6. Unable to negotiate lower interest rates on loans
    Debt Management Plan

  • #2
    Consolidating debt typically involves removing new credit within the sort of debt consolidation loans to pay off existing credit. further prices are often concerned and to grasp the risks, it’s vital to urge impartial recommendation before going ahead with this.

    Most people do that to reduce:

    The charge per unit on their debt
    Their monthly payment quantity
    The number of corporations they owe cash too.
    Are you worried about debts? Get a debt consolidation loans even for bad credit from us in UK to clear all your multiple debts and improve your credit scores, Apply now.
    Quick Cash Loans Online


    • #3
      Debt consolidation is combining multiple debts into a single debt to simplify your monthly payment. Debt consolidation usually has lower interest rates so it can be a great option to cut down the amount of interest paid and help you pay down debt faster but make sure to pay on time and consistently.