What debt consolidation help is, and how it can help solve your money problems
Living with debt is tough. It can feel overwhelming, weigh you down, and cast a shadow over every moment, never leaving the back of your mind. You may even feel like there is no way out. This is a massive problem, and you are not alone. In the UK 318 people declare bankruptcy every day and over half of these experience severe mental illness as a result. Luckily, there are things you can do to start working out from the debt hanging over your head and start feeling free again. One of these is with debt consolidation help.
What is debt consolidation?
Debt consolidation is a form of refinancing that combines all of your separate debts into one manageable loan. This works by a debt management company paying off your existing debtors so you would only have this one company to repay. For example if you had outstanding debts of £3427 with one credit card company, £4951 with another, £500 with a payday loan company and were £650 behind on your rent, this company would either pay off these debts directly or give you the £9528 to pay them off yourself. You would then owe this one lump sum to the debt management company which you could negotiate the paying back to. This would likely involve much smaller monthly payments over a longer period of time, often with some form of collateral such as a car or home to secure the debt and allow for lower interest rates and smaller repayments to help you get a handle on your debt.
How can it help me?
We have already touched on it, but debt consolidation help can be a lifeline if you feel yourself struggling with out of control repayments. As mentioned, it will generally lead to smaller monthly repayments and lower interest rates, paid over a longer period of time. This allows you to spend less of your monthly income on just paying off old debts, and more on the necessities required to survive. This alone is reason enough to look into consolidation as an option, and it can provide a lifeline when you need it most.
That is not the only benefit of debt consolidation though, as with all of your debts together in one lump sum it becomes much easier to organise and plan your budget. If you have ever felt overcome trying to work out who you owe what to, and when, or are getting caught out with late fees with repayments when you thought you had more time to pay, debt consolidation could well be the solution.
How can I get started?
The first thing you need to do is to talk to a professional. From here you can work out whether debt consolidation help is for you, and how you can go about getting it. Fill out the form here and one of our team of expert advisors will talk you through your options and work out the right course for you. Stop living under the weight of debt, get help today.