Every so often you have to take stock of your numerous debts and think about the best way to make them easier to manage before they become a problem.
The main trouble with debt is having too many separate units of debts scattered all over the place making finances difficult to control and manage.It can even become a problem remembering when all the various repayments have to be made every month.
You can become quite confused and muddled about when all your debts must be paid.
You can find yourself writing a cheque for all the numerous debts every day or so which is rather a pain and cheques do incur bank charges which can be fairly steep, and the bank charges are simply a waste of good money that could be going towards something else . debt consolidation
Even if the debts are paid through the bank by BACS, charges are made and you also have to make sure that there is enough money in the bank to meet the monthly repayments.
If you overlook sending a cheque on time or forget to deposit adequate funding at the bank you can find yourself being penalised by late payment charges and even your credit rating can be impaired, and no one wants that to happen.
It is good idea to make financial life easier. and the way to do this is by consolidating them into one payment every, arranging one lump of debt instead of many different separate items of debt.
Even if the monthly payment for the one piece of debt was the same as for the different units of debt, it makes sense to consolidate them, but the fact is that debt consolidation not only combines all the loans etc. combining everything into one and costing less s well.
Unfortunately for tenants who are in debt and finding that their debts have become a problem for which they must find debt solution, the only way is to obtain debt advice from a qualified adviser who may well advise that the only debt solution open is debt management.
A homeowner however has the option of arranging either a secured loan or remortgage both of which perform the same task of debt consolidation by rolling all the debt into one much lower monthly repayment.
Secured loans have interest rates starting at about 9% APR and remortgages from 1.98% which makes it as clear as daylight just how much can be saved by taking out a secured loan or a remortgage to arrange debt consolidation, as the remortgage and secured loan rates are a fraction of that charged for credit cards, home improvement loans and most personal loans.
Sometimes a secured loan can be preferble to a remortgage such as during the tie in period with an existing mortgage which would mean that an early repayment penalty would be levied.
Whether a remortgage or a secured loan is the chosen method both will afford massive savings by being used for debt consolidation
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