Debt Consolidation is when you consolidate all your outstanding debts and credit cards into one monthly, manageable payment. Rather than trying to manage and pay the high interest rates on a range of credit cards, and not having any spare change at the end of the month, a Debt Consolidation clears them and allows you to manage your finances each month.
We recommend you seize payment and any ‘shopping sprees’ on your credit cards during your repayment, so you’re not then building another debt at the same time. If anything, close the account and cut up your cards!
Not only will you be clearing your debts, your credit rating could improve once you close other credit cards and maintain your repayments, which show lenders that you can manage your money more responsibly.
Check out the Average Debt Consolidation Loan by Age:
What to consider when applying for a Smart Debt Consolidation Loan?
Work out the amount of your loan. As a rule, the more you borrow, the lower your rates. But remember, don’t borrow more than you can afford to repay.