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Cant get a debt consolidation loan

Individual Voluntary Arrangements are a way to clear debts that you can no longer manage the payments for. If your debt situation is out of control and bankruptcy is becoming a possibility, then an IVA may help. 

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IVA Alternatives

Most of us have personal money worries and want to do something about them. We know that there are solutions out there. The problem we have is that while we know that we need to do something, we don’t know where to begin and so many of us do nothing.

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Consolidating Debts

Can consolidating debts work?

There are some advantages to consolidating your debts into one consolidation loan. For many people it is enticing to have to make just one monthly payment instead of many. Making multiple payments to a variety of creditors in respect of a number of different accounts is time consuming, particularly when funds are tight and there is not enough money to go around. You have to decide which debts are ‘priority’ ones. These you must pay. For the rest you simply have to make do with whatever you can afford to pay, even if in some cases it is less than the contractual amount that you should be paying. 

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Cons of Debt Consolidation

There are some advantages to consolidating your debts into one consolidation loan. Even the word ‘consolidation’ is reassuring for many people. It invokes the idea of reducing a lot of little and some not so little problems into one single manageable problem.

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Considering Debt Consolidation

There are some advantages to consolidating your debts into one consolidation loan. Having to make just one monthly payment is one of them – rather than having to make multiple payments to a variety of creditors in respect of a number of different accounts. A big advantage is that you have just one creditor to deal with rather than many creditors and so managing your finances is simplified. It is also likely that your credit rating will improve particularly if you include all of your credit card accounts in the consolidation. On top of these advantages, the monthly repayment on the consolidation loan may be lower than the sum of the repayments on the multiple loans.

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Fees and key info

We are happy to provide you with debt advice only. We only charge a fee if you opt for one of our debt solutions. Fees will depend on which debt solution we provide and what your personal circumstances are. All fees will be discussed prior to commencement of any service or debt repayment plan. Click here to read our fees and key info. Please note: From time to time we may refer you to other services providers or charities such as the CAB.

MoneyHelper

If you’d like more information on other sources of free debt help and advice you can visit MoneyHelper – an organisation, backed by government and set up to offer free and impartial advice to those in debt. - Click here to visit MoneyHelper