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Debt Consolidation Northern Ireland | Consolidate DebtsWhat is Debt Consolidation?If you have several debts you can consolidate them into one debt by taking out a personal or secured loan, or remortgaging your property. This is called Debt Consolidation. What happens is you take out the new loan to pay off all your other debts and then you only have one debt to pay off which is the new loan, so only one monthly payment. Debt Consolidation is only really suitable for people who have debts up to £5000. For debts over this you would probably need to be thinking about a Debt Management Plan or an IVA. What are the benefits of being in a Debt Consolidation?
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All current repayments on credit cards and loans are converted into 1 monthly payment that is generally easier to manage and keep track of |
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Interest rates can be usually lower, so you may have a more affordable payment. |
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Less pressure and harassment in dealing with multiple creditors |
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In the long run you may save money and you will have a date when the loan will be paid off if you keep to your repayments. |
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Could help your credit rating as you will be less likely to default. |
Some of the Disadvantages of Debt Consolidation are...
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Don't be fooled into thinking you have cleared your debts. You have just shifted the debt to a different payment plan |
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Be wary of interest rates. Try to get a fixed rate if you want a payment that doesn't change |
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Fees may be payable to arrange the new loan. |
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If you have a poor credit rating you may have a higher rate of interest to pay which can mean it is less affordable. Another debt solution may be better for you. |
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If you get into difficulties making the new payments it can be harder to deal with only one creditor if you are then looking at a debt solution for example. |
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If you get into difficulties making the new payments it can be harder to deal with only one creditor if you are then looking at a debt solution for example. |
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Apply for Debt Consolidation with IVA Northern Ireland
If you would like to apply for more information on Debt Consolidation you can contact our expert Debt Advisors via one of the following methods...
- Call us Freephone on 0800 043 3328
- Chat Online to a Debt Advisor Now
- Email us at enquiries@ivanorthernireland.co.uk
- Fill in our Call Back form to the right of the page
