Managing Your Debts – A Help Guide

Written by on March 26, 2013 in Money - No comments | Print this page

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Debt concept.Debt consolidation

There are many reasons why a debt consolidation loan is the best way to manage your finances. Here are just a few:

Organisation

Organising payments and keeping on top of multiple debts can be a real headache.  With a debt consolidation loan you are simply consolidating your debts into one monthly, manageable payment.  Leaving you time to get on with enjoying your life.

Pace yourself

By taking out a debt consolidation loan you are able to take things at your own pace.  This will help you to put all your payments into one and rearrange your debts.  This means that over time you will gradually be able to reduce your monthly payment.


Better budgeting

Without an endless stream of payments you can manage your finances better.  This means that monthly budgeting becomes easier.  So, in the long run you will find you have more money for the things that you want to do.

How does it work?

A debt consolidation loan works by helping you to reduce the amount of money you pay each month.  Your loan will be able to pay off current debts that are costing you more.  You can then pay off your overall debt in smaller monthly installments.

How do I know if it is right for me?

A debt consolidation loan is the right way forward if:

–  You want to manage your debts more effectively

–  You want to be better organised

–  You want to have a better hold on your finances

–  You would be able to afford the monthly repayments

However, if you are having serious financial issues then taking out a new loan may not always be the best move.  In this instance we would advise you use a debt management plan or an IVA (Individual Voluntary Arrangement).

And remember, taking out a loan that is secured against your home is something you should give careful consideration to.  If you do not keep up with your repayments then your home could be at risk of repossession.

One final point to keep in mind, a debt consolidation loan may help to manage your finances but if you repay over a longer period of time you may increase the overall interest. There are many companies in the UK that can assist you in times of financial hardship, Churchwood Finance offer free debt help and advice and have a number of tools to help you decide which debt solution is best suited to you.

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Lee Hill is a debt and finance blogger who writes for a number of UK web sites, when not at his computer writing you can usually find him out running, reading or socialising with his family and friends.

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