Find out what debt help is available:
- Find the right debt solution
- Lower debt repayments
- Stop pressure from lenders
- Clear unsecured debts for good
- Have just one low monthly payment
- No need for a loan
- Reduce debt with UK legislation
- Reduce Your Debts By Up To: 70%
Debt Consolidation / Credit card debt consolidation
Credit card bills, hire purchase balances, store card bills, mail order debts – every month, lenders from all over the UK are making millions of pounds by charging high rates of interest on loan balances, knowing that the vast majority of people can only afford to part with the minimum payment.
Many people find themselves juggling credit card balances to meet the payments, struggling to make monthly repayments and keep their heads above water. If you need credit card debt help the natural reaction is to contact a company offering a debt consolidation service and apply for a debt consolidation loan.
What could be easier than borrowing yet another, larger lump sum to pay off all the bills and get the creditors off your back, while paying off lower monthly amounts than the existing grand total?
A debt consolidation loan is very effective if you can easily afford the repayments and are just looking for a way to simplify things and bring down the interest rates. But if you struggle to make your repayments each month or your outgoings your monthly income, a consolidation debt is not the best solution. In such circumstances a debt consolidation loan will not actually lift you from the cycle of debt and it may be more appropriate to look into a debt management plan, which will consolidate all your repayments into one monthly payment without requiring you to take out another loan.
If you make monthly repayments to multiple creditors, one option is to apply for a debt consolidation loan. The principle behind this is that you borrow a large, lump sum to repay your creditors and are then left with one creditor and one monthly repayment. The idea is that the repayments on this single, larger loan will be lower than the sum you are currently paying. For instance, if you have four different credit cards you might be paying an average interest rate of 16.9%. It is possible to get a credit card debt consolidation loan for the combined total. The interest rate on that might be about 9.9%. Thus, making a saving on your monhtly repayment.
A debt consolidation loan can help many to reduce their payments for credit cards, loans, hire purchase, etc. It works very well if you can easily afford the repayments and are just looking for a way to simplify things and bring down the interest rates.
However, there are many people that struggle to meet the repayments each month. Some of these even find that their outgoings each month exceed their income. For these people, a debt consolidation loan is probably not the answer. If a person is in debt, taking out another loan to pay their other loans is not the answer. A small reduction in their monthly repayments will not make a significant difference in allowing them to break out of debt. In cases like this a debt management plan may be more suitable. This will also consolidate all your repayments into a simple monthly payment but it does not involve taking out another loan.
What is a Debt Management Plan?
Debt Management is a system to help those in debt become debt free. A Debt Management Plan is a simple, systematic way of dealing with your debts. Not only can it reduce your repayments but is also takes the stress of dealing with your creditors away and can stop them from taking legal action against you.
Most providers operate a ‘single payment’ plan whereby clients pay a single, monthly fee and they then distribute this between each of their creditors. This means all your debts are consolidated into one single, affordable payment. Not only are they consolidated into one monthly payment, in almost all cases we can reduce the total amount you pay each month by up to 75%. This is due to the fact that your creditors know you have a debt management company working on your behalf and we can work on your behalf to get the creditors to lower or freeze your interest rates. Also, you no longer have to feel harassed by your creditors; from the day you sign up, your provider will handle all communication with your creditors.
The simple payment you pay is based on your income and expenditure. This means that legitimate living expenses such as mortgage, phone and food are removed from your income so you only pay what you can afford.
If you think you need debt management, or if you are still not sure whether you want a debt consolidation loan or a debt management plan, click the button below and use the form to send your details.