Debt Consolidation Loans
Consolidation can help fix your finances – if you're careful
If you're drowning in debt, then debt consolidation loans could help get you back on your feet. By combining all of your debts into a single monthly payment, debt consolidation loans can ease the pressure on your finances – but if you don't change your spending habits, they can make the situation worse.
Debt consolidation loans are a godsend for people who've got carried away with their spending. If you've got a collection of credit cards and store cards, some hire purchase and a hefty overdraft, you could find that you're spending hundreds of pounds each month just to pay the interest. Meanwhile, the amount you owe doesn't decrease.
With debt consolidation loans you only pay a single monthly amount. However, it's important to address the things that got you into trouble in the first place – so if you're using debt consolidation loans to clear credit card debt, you need to cut up your credit cards. If you don't, you're likely to keep spending. In many cases you won't have a choice: many lenders won't consider debt consolidation loans unless you close the accounts of every debt you're paying off.
In some cases, you might even be asked to get rid of your Switch card and stick to a basic cash card instead. It sounds draconian but the lenders are being sensible: they know that debt consolidation loans are used to get people out of a mess, and they don't want you to make the same mistakes again.
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