Consolidation Loans UK

Why it's a good idea to consolidate your debts early

With consolidation loans UK customers face something of a catch-22: it's easier and cheaper to get a consolidation loan when your finances are in good health than when you're drowning in debt. It's worth thinking about consolidation even if you're not encountering problems paying the bills.

With consolidation loans UK customers will get a much better deal if they apply early than if they wait until they're drowning in debt. That’s because lenders base their decisions on the state of your finances, so if you're having trouble paying the bills then you will find that lenders may be unwilling to give you money or if they do, they'll charge hefty interest rates.
When it comes to consolidation loans UK lenders will be more sympathetic if you decide to reorganise your finances when you're doing reasonably well. Even though you might not be encountering problems meeting your repayments, if you have existing loans or credit card debts you can almost certainly reduce the amount of interest you pay each month. By taking control of your finances when you're doing fine, you can make sure you won't get into trouble in the longer term – not least because if your existing debts don't have payment protection insurance, you can replace them with a consolidation loan that does.

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