2) High monthly payments People with lots of debt also frequently struggle with high minimum payments – which are sometimes more than they can pay each month.
That can lead to a domino effect where you miss payments, your interest rates get raised, and then you can’t stay above water.
If you’re in that kind of situation, there’s a good chance your debt will grow faster than you can pay it off.
Which is why a consolidation loan can often prove to be a better option: it may allow you to get a lower interest rate, which would save you money over the long-run.
This can compound their debt problem even more, of course, and can leave them even worse off than they were before.
If you take out a debt consolidation loan, you need to be totally sure that you won’t need to use your credit cards – or take out any other credit – while you’re repaying your debt consolidation loan.
So a debt consolidation loan with just one single monthly payment, rather than trying to manage several other more expensive loan repayments.
In some circumstances, it may seem sensible to debt-consolidate.This loan works in the exact same way as a debt consolidation loan.Before spending hours searching for the most affordable debt consolidation loan, you should save your time and money by applying with P2P Credit.Debt consolidation may be harder for people with poor credit ratings, and the high rates of interest offered to people falling into this category may not even cure the symptoms of unaffordable monthly debt repayments.Secured loan interest rates are generally lower than unsecured loan interest rates, but to benefit from these you normally need to be a homeowner.Rather than continue to juggle a number of debts, a debt consolidation loan allows Aussies to “consolidate” (i.e. Fair Go Finance’s Debt Consolidation Loan can help you if: What is Credit Card Debt Consolidation?