Advantages and disadvantages of consolidating debt
As such the amount in interest you pay will continue to go up and up.Given this if you use a loan to consolidate debts like your credit cards you will potentially save a significant amount in interest payments.4.Debt consolidation has quite a lot of advertisement both online and offline; the trouble with this is that advertisement only focuses on the virtues of a particular thing and this can persuade people to make decisions that are not in their best interest at the end of the day.
If you find yourself in a position where you must consider debt consolidation, you need to be aware of the advantages and disadvantages that come with it before you make your decision. Your Credit Rating is not effected Consolidation simply involves paying off a number of smaller debts with one larger loan.None of the older debt agreements are being broken as part of this process. Given this your credit rating will not be negatively effected in any way.2.Find out which solution is likely to be best for you by using our debt analyser, which you will find in the left and right hand columns of this website.It is free to use and, as well as a detailed report on your best options, you will receive a copy of the e Book ‘IVA & Bankruptcy’ by James Falla. We have debt experts on hand to answer your questions with unbiased, accurate advice that is best for you, not your creditors.
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BMD Tip: This is particularly the case with secured loans.