What Is Debt Consolidation And Why Is It Helpful?

Making your life easier by consolidating your debt is the surest and easiest way to become debt-free faster. Combining your existing accounts into one easy to manage loan, will not only save you time but will save you money.

Debt Consolidation

Consolidation is combining your existing debts with various lenders and converting them into one singular loan, then paying the sum off as a whole. This is a helpful way to manage multiple existing debts, as it gives you the ability to pay off money owing with a single interest rate and to secure better credit by using a single lending company. Debt consolidation also gives you the flexibility to negotiate repayment terms and interest rates, often saving you money in the long run, as you can avoid multiple high-interest accounts and payment dates. 

Debt consolidation is a secure way to stabilise your credit line and to free yourself from the pressures of hire purchases and credit cards. When you combine your finances into an already existing mortgage (if you have one) you are effectively elevating yourself from high-interest loans that can negatively impact your credit rating. 

What Can I Consolidate?

The first question people ask is, what loans and debts can I consolidate? While this answer can differ from lender to lender, but most established Financial Advisers will be able to easily transfer your debts from:

  • Credit cards.
  • Debts on store credit cards.
  • Hire purchase loans.
  • Personal loans from finance companies and banks.
  • Student loans.
  • Tax arrears.
  • IRD payments.

While these are your traditional forms of debt, many companies also include medical debts and most payday loans, all you need to do is ask. If you are struggling with making multiple payments to several agencies, consolidating your finances is most likely your best chance of staying on top. With just one simple payment to make, you can effectively create a new budgeting scheme that is designed to work for you.  

The Benefits

If you’re suffocating in high-interest loans and credit card repayments, rolling your existing debts into one easy to manage loan could be the answer to reaching your financial independence. 

With competitive interest rates and a single payment system you can keep up with, consolidation is easily the best solution for your financial woes. Attaining a single loan doesn’t just improve your credit score, it will effectively:

  • Provide you with a lower interest rate that is spread over a more achievable length of time.
  • Make budgeting easier with only one payment to manage.
  • Provide you with lower monthly payments.
  • Allow for possible tax deductions.
  • Allow the equity of your home to lower your interest rates. 

Where Do I Consolidate My Debt?

Even if the banks say no, there are still an array of options available to best suit your needs. It is however important that you thoroughly think about your long term financial plans and how quickly you want to be out of debt.

The best way to figure out where you can consolidate your debt is by working with a reputable financial agency. An experienced Financial Adviser will explore the variety of consolidation channels available to you and present you with the best options to suit your needs. Professional Advisers can secure you a competitive interest rate and will help you to avoid unnecessary costs such as fees for transferring your funds from credit cards and hire purchases. Enlisting in the expertise of a professional Financial Adviser will ensure you are provided with accurate figures and up-to-date advice, greatly benefiting the flexibility of interest rates and your repayment options.

We Are Here To Help

The team at Platinum Mortgages can offer you a complete debt consolidation solution. With leading market rates on all debts transferred and comprehensive consolidation services, our team of professional Financial Advisers can help you combine your outstanding debts into one easy to manage loan. Get in touch today so we can provide you with the right advice for managing your outstanding finances.

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