Taking on any new debt is a big decision so we've prepared some guidance to help you make the right decision. In particular, extending the term of your debt can incur more interest and cost more in the long run, and sometimes an Early Repayment Charge may apply.
Here's 3 easy steps to help you decide if a debt consolidation is right for you:
1. Make a list of all your debts.
Find out the outstanding balances, current interest rates and any Early Repayment Charges for any debts that you wish to repay.
2. Helpful tools
You might want to use loan calculators and approval indicator tools to find the right loan for you, find out if you're likely to be approved, how much you may be able to borrow, the monthly repayments and personalised interest rate.
You can then easily compare your current commitments with a new loan.
3. Think through your options: for example using savings to reduce debt could be cheaper than a new loan.
If you're struggling with excessive monthly payments you may want to speak to your current lenders, they may be able to help with a new payment plan or a re-payment holiday.
4. Finally, work out your what is important for you and whether a personal loan saves you money:
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