We are currently experiencing technical difficulties with our telephone system.
We apologise for any inconvenience and are working to resolve this as soon as possible.
Evolution Money
Customer Enquiries 0161 814 9158
This website uses cookies. By continuing to browse the site you are agreeing to our use of cookies. Continue
Secured Loans > Benefits of consolidating your debts

Benefits of consolidating your debts

7th January 2016 | Published by Evo Money

Being in debt can be one of the most stressful things in people’s lives. Most of us will move our debts around to try to gain the best rate, all the while trying to pay off as much as we can. Unfortunately, though, it seems that before we get ourselves straight, something else always comes along — perhaps a home emergency, an unexpected problem with the plumbing or a broken-down vehicle.

All of these can lead to a necessity to borrow more money on a different credit card or by taking out a loan. Whilst aiming to get the best rate of interest on the money we owe, we can often cause ourselves confusion and even additional expense.

At the very least, monthly repayments can end up being more than we need to pay, and in some instances more than we can afford. This can lead to people living hand to mouth just to keep up with repayments, damaging their quality of life.

One possible solution is to consolidate existing debts into a single, more manageable payment each month. Both homeowner loans and debt consolidation loans can be useful for this purpose, allowing you to budget more effectively and avoid getting into further debt in the future. It can also simplify your finances.

Another advantage of consolidating your debts is for your own peace of mind in terms of knowing exactly when you will become debt-free. Someone who has debt on an overdraft, a loan, a store card and a credit card will be making four payments per month and these are likely to be at the minimum amount. This means that you are only paying off a tiny bit each month and the rest is going on interest, so the light at the end of the tunnel when it comes to paying off those debts can seem a very long way away. If another sudden need for cash comes up, you could well end up with a further debt. It could then be a slippery slope to defaulting on one or all of those payments.

Consolidation through the means of homeowner or debt consolidation loans allows you to deal with just one creditor each month and make a single payment. This single-payment approach will allow you to better budget for your monthly outgoings. You will know exactly how much money will leave your account on each day of the month. You can then sit down and draw up a list of the amount of money you have available and the things that you need for the month, safe in the knowledge that there won’t be any unexpected surprises when it comes to your repayments.

There is also the psychological motivation associated with a single loan to consolidate your debts. When you consolidate, the lender will tell you how much you have to pay per month and for how many months. This will give you a very clear idea about the day when you will completely pay off that loan. This is a massive motivator to keep up your repayments and not get into more debt. You can even mark on the calendar the date when you will no longer be paying out towards debts each month. Think how much money you will then be able to save, or even just spend on enjoying yourself without having to worry.

The other idea of debt consolidation is that, in total, you end up paying less interest. You should find a loan at a lower rate than your existing credit, ensuring that you are not paying over the odds for the simplicity of a single payment. Monthly repayments could be reduced through this alone, but by spreading out the repayments over a longer time period, you can further reduce the amount that you will be required to pay each month.

Category: Money
This post was written by Evo Money
Warning: Late payment can cause you serious money problems. For help, go to moneyadviceservice.org.uk

How our customers rate us

We’re proud of the high standard of our customer service and believe that each of our customers should be treated as an individual.
Evolution Money 96 out of 100, based on 178 reviews over the past year. 178 user reviews. Read our reviews

Members of the The Finance & Leasing Association

FLA logoWe are a member of the FLA (Finance and Leasing Association) and subscribe to its lending code.

Socialise

Feeling social? Check out our social pages!

Tweet us on Twitter
Like us on Facebook
Add us on Google+

Our Address

Evolution Money,
9 Portland Street,
Manchester,
M1 3BE


Registered Company Number: 06987852

Contact by Phone

General Enquiries:
0161 814 9158

Complaints:
0161 814 9165

Contact by Email

Evolution Money Limited is a licensed credit broker and service provider to Evolution Lending Limited. If your application doesn’t meet the underwriting requirements of Evolution Lending Limited we may pass your information to other lenders and brokers. Evolution Money Limited is a company registered in England & Wales, registration number 06987852 and registered at 9 Portland Street, Manchester, M1 3BE. Authorised and regulated by the Financial Conduct Authority, firm reference number 708324.


© 2020 Evolution Money | Cookies | Complaints Policy | Breaking Down Our Loans | Terms & Conditions | Fair Processing Notice
Start Here
Please wait

Please wait

Don't leave just yet!

Evolution Money are a multi Award Winning UK finance company with thousands of happy customers!

Award Winning

Our friendly loan advisors can let you know if you're eligible for a loan without affecting your credit score. Why not give us a call today!

Freephone 0800 144 8188

Back to Evolution