It's not uncommon to apply for a debt consolidation loan for debt problems. It would often be simpler to have all debt in one place and pay one interest rate. Typically, it's quicker to manage because it's one payment per month, the costs involved are easier to understand and usually you will know when you will be debt free.
Debt Consolidation Loan For Debt
Debt consolidation loans was a popular solution to debt in the past when the availability of credit was far greater.
Today, banks and other lenders and less likely to lend money for the purpose of debt consolidation. While it would be an ideal solution to resolve debt problems, it can often be tricky to get a debt consolidation loan.
Tips for a Debt Consolidation Loan
To give yourself the best possible opportunity with your debt consolidation you should apply for your credit file first. Experian offer a free 30 day trial. Check your credit file to ensure it's accurate. If there are any anomolies have them removed by the credit reference agency.
Every time you apply for a debt consolidation loan it will leave a footprint on your credit file. This can negatively affect your ability to get credit if you have too many footprints on your file in a short space of time.
So, it's always best to apply for the credit you require or to search for lenders who specifically offer debt consolidation loans.
I Can't Get A Debt Consolidation Loan
If you are unsuccessful and can't obtain a debt consolidation loan then it's important you seek debt advice. There are options available to you which can help you with similar benefits to the debt consolidation loan.
For example, some debt solutions enable you to make one monthly payment to one company. There are also some debt solutions which will guarantee to freeze interest and charges.
To ensure you are being provided full advice you should speak to a debt advice charity. You can contact your local Citizens Advice Bureau for face to face advice or telephone 0800 085 0226 to speak to a Debt Support Trust advisor.
Our debt analyser could help you with an online debt solution: