Nothing is more stressful than having multiple bills due each month at varying rates. It is quite easy to forget to pay one and then you have late payment charges and a black mark on your credit report.
In addition, it can be difficult to figure out which ones you are better off paying first. Do you go for the biggest balance, the lowest, or the highest interest rate?
If this situation sounds familiar, it may be best to consider obtaining a debt consolidation loan. Of course, your credit will need to be in proper standing.
If this is so, a low-interest debt consolidation loan will surely make things easier and allow you to get out of debt quicker.
Today, even the best of credit cards are sporting double-digit interest rates. Paying off a high balance makes it all but impossible to reduce your debt.
Furthermore, when you are paying multiple cards or loans, you are barely putting a dent into your debt. In most cases, the lower payments barely cover the interest charges.
When you qualify for a debt consolidation loan, you should have a lower interest rate, thereby naturally reducing your overall debt.
In addition, you only have to make one payment per month, which makes it much easier to manage and makes it less likely you will miss a payment and have to pay late fees.
With charges over £25 and a soaring interest rate as a penalty, this alone is reason enough to get the loan.
A low-interest, or should we say lower-interest, debt consolidation will surely make your life easier and allow you to get out of debt much quicker.
However, if you manage to get the loan, be sure to put those credit cards away so you do not run them up again. If you want a sure fire path to bankruptcy, charge them up and then have the loan on top of the same debt load you had before the loan.
If you were struggling before, you will surely meet your demise if you let that happen!