Debt Consolidation

Are Consolidation Loans a Good Idea?

If you are in debt and want a proper debt solution, call the debt helpline on 0800 731 7973 or click here.

If you’re thinking about a loan to consolidate your debts, perhaps you should stop and take time to consider your other options. At Debt Free Me we generally think people are better off without taking on more debt.

 In some situations a debt consolidation loan - secured against your property for a low interest rate – can make sense. But the temptation is always to borrow more than you need, leaving you more in debt, adding fuel to the fire. 

In fact, even if you borrow only what you need at the lowest rate of interest available, the total amount you repay can largely be determined by the duration (‘term’) of the loan. Many secured loans display low APRs, but last for twenty years or more! This means loans and mortgages with a low headline rate can end up costing you thousands - or tens of thousands - more than you thought. You can thank government-related bodies for simplifying the competition for credit into an unhelpful APR contest, encouraging consumers to be aware of APR and little else. Over-reliance on APR as opposed to 'total amount repayable' is a sure-fire way of getting you into trouble over and above what you wanted. 

You may already feel like you have been put in this unfair situation by loan companies offering you holidays, cars, home improvements, and extra cash.  You may have been offered low interest rates, large sums, and been given ever-increasing credit limits you didn't ask for...well enough is enough! Perhaps its time for you to investigate some debt solutions that can really work.

You can call our friendly, professional advisors completely FREE on:

 0800 731 7973

or click here and use the form; we can call you back.