Consolidating to one

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Age plays a big role in determining how much people need to consolidate their debts.Young people aged between 18 and 24 tend to require much lower loan amounts than middle-aged people.If you borrowed £7,616 to consolidate your debt over three years, at a representative rate of 3.6% APR and an annual interest rate of 3.60% fixed, you would pay 36 monthly instalments of £223.31.The total charge for credit would be £423.02 and the total amount repayable would be £8,039.02.Rather than making lots of separate payments to different lenders every month, you’ll only have to pay your consolidation loan provider.With each separate existing loan you look to pay off with your consolidation loan, check whether there are any early repayment charges – and, if so, factor them into your calculations.

A secured loan is when the debt is held against an asset (usually property) – think carefully before securing other debts against your home because your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.We never take a fee from customers for this broking service.Instead we are usually paid a fee by the lenders – though the size of that payment doesn’t affect how we show products to customers.If the cost of the proposed new arrangement is less than the existing one, it clearly makes sense to consider it.With a debt consolidation loan, you move all your borrowing, or a significant chunk of it, from a variety of locations onto a single loan.

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