However, to ensure that you are doing this correctly and in accordance to your specific financial needs it’s a good idea to speak to an adviser who can help by assessing your current financial position to ensure that you benefit from debt consolidation in both the short and long term.
When you calculate the interest and fees on all the separate accounts you might find that you are paying a large amount, but there is a way to reduce it.
Debt consolidation involves you taking out another loan that combines your credit accounts into one and helps to reduce the separate fees and interest you are paying.
Depending on your financial situation, there are a few options available to you when it comes to debt consolidation.
Take a look at the options below and see which one you would be eligible for, and which one would work best for your situation.
The hardest aspect of minimising the debt in your life using debt consolidation is changing one’s mindset to move away from the financial hardship of yesteryear.
I am a firm supporter of cutting up credit cards and living life on a cash-only diet.
The debt consolidation loan you take out may be borrowing on top of a loan you already hold, such as your mortgage.
It's important to determine whether you can afford the repayments on a debt consolidation loan before you apply and if taking one out will put you in a better financial position rather than a worse one.
Unfortunately John was struck by a sudden illness which forced him to take six months off from work for treatment and recovery.
During these six months he had no income coming in, and John and his wife Claire were forced to pay for their living expenses using their credit cards.
It might start with a credit card or a car loan or you might even take out a small personal loan for a holiday.