When you’re struggling to keep up with the repayments on a number of different debts, it can be incredibly hard to stay on top of them all.
Missing payments on a credit or store card bill, or a bill that comes out of the blue can have a massive impact on both your day-to-day finances and credit rating.
In the simplest terms, a debt consolidation loan would be used to pay off your existing debts and transfer the amount owed into a single loan with one manageable, monthly repayment.
Consolidation of debt is a popular way to group separate outstanding debts together into a single fixed monthly repayment. This makes your separate debts much easier to manage, rather than constantly having to keep track of multiple payment dates and various amounts leaving your account.
Consolidating your existing debt can help you regain control of your finances, relieve continual stress and provide peace of mind over your finances. Managing one payment is far easier than managing five or six, which means you can start to develop a clear plan for a healthier financial future on your way to becoming debt-free.
At Evolution Money, we are committed to finding your ideal solution, and can tailor our secured debt consolidation loan options to meet your exact circumstances.
Our repayment terms for debt consolidation can reach up to 15 years, which means you could reduce your monthly repayments and free up a portion of your monthly expenditure.
If you are looking to improve your credit score, a single debt consolidation loan could have a positive effect on this. Balances of the debt accounts will be considered as paid off completely. Even though debt consolidation creates a new account, lenders see the other accounts as paid in full.
Keeping up the payments on the new credit will also have a positive effect on your score in the long term. However, it’s important to note that an increase in your credit score will take time, as you need to build up a history of payments on the account.
If you have multiple debts with different interest rates, consolidating all your debt into one single payment, means you end up paying only one interest rate.
Repaying your existing debts with a loan at a lower interest rate could save you money by reducing interest cost. Extending the loan term may also reduce your monthly amount into a much more affordable payment for you each month.
Bear in mind that if you have decided to pay the loan for a longer period of time, the interest will be paid over a longer timeframe too.
Take a look at our handy loan calculator to see what your repayments might be on a debt consolidation loan through Evolution Money.
Or, give us a quick call on 0800 138 7181 to talk through your credit needs and get a quote from an Evolution Money personal account manager today.Apply for a secured debt consolidation loan