Consolidation loans Do’s And Don’ts
Added: (Sun Jul 22 2007)
Pressbox (Press Release) -
Consolidation loans Do’s And Don’ts
Are your debts spiralling out of control, credit cards coming back to haunt you or recent interest rate rises coupled with high energy and petrol prices starting to take it’s toll? Is there a solution? Well some look into a consolidation loan where you pay off all your debts at once and put them into one monthly payment with one interest rate, which usually works out lower than your other debts, you can lower your monthly repayments by hundreds of pounds and start to get your finances in some sort of order! But the consolidation loan can make things a lot worse if you don’t follow certain steps, the main one for me would be to cut up all your credits cards, this is because now your debts are paid off you have all these unused credit cards that have been brought back to life itching for you spend money on them and for some the temptation is too much. This would put you back in the same situation you were in before, only now you have the consolidation loan to pay off, as well as your credit cards, not good!
Another tip is to try and take out a fixed rate loan to take out the risk of interest rises, with the recent rises a lot of companies have pulled fixed rate loans, for me that is a sign of things to come, but if you look around you still might find the odd deal!
Don’t borrow more than you need with your secured loan, it can be tempting to add a little more for a holiday or new clothes etc… but remember you will be paying them off for maybe 10 years, no holiday is worth that!
Payment protection for me is a big no-no, only use it if you REALLY think you need it. It can add thousands on to the consolidation loan that could be spent elsewhere (Maybe on that holiday!)
ALWAYS read the small print, the amount of people who get caught out by this is amazing, whether it is redemption penalties, charges for when you go into arrears, it all adds up and you could be in for a nasty shock if things start to go wrong.
Remember your home is at risk of repossession if you don’t keep up with your monthly repayments so be careful!
Now you have taken in the above information, and decided that a consolidation loan is the way forward, then visit urmall.co.uk, we have a list of companies that will be able to help you no matter what your credit history, good, average or bad (ccj’s arrears, defaults etc..) there will be a secured loan company listed that can help you.
Andrew Stanley
www.urmall.co.uk
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