Are you paying half of your earnings to loan repayments?
If so, you would have to wait longer to achieve your short- and long-term goals.
Moreover, a good reserve of high-interest loans may soon deplete your savings and force you to tap your retirement account. It could be a red alert for your finances.
So, what can you do to reverse the cause?
Seek personal loans for debt consolidation.
What Happens When You Consolidate Your Loan with Personal Loans?
When you consolidate your debt with a single personal loan, you can:
- REDUCE LIABILITIES
- REDUCE INTEREST
- SAVE MORE MONEY
- REACH YOUR GOALS TIMELY
- PAY OFF DEBTS EARLY
Here, you no longer need to track the repayments for the month. Instead, you can automate the payment on the very day. By doing so, you will never miss any payment and attract any late payment penalty.
It would grant you more flexibility to think about improving other life aspects.
How do personal loans vary from Debt consolidation loans?
Although, individuals consider debt consolidation for reducing liabilities than a personal loan. In some cases, a personal loan can be a viable option to consolidate debt.
|A debt consolidation loan is consolidating debts to meet a variety of life purposes like buying a car or home upliftment. You can use the lump sum either to fulfil the purpose or pay off your creditors.
|On the other hand, you can use personal loans for various purposes, including debt consolidation. Here, there is no restriction on usage; you can consolidate the debts and use the sum for other purposes.
|It serves only one purpose- free up money
|One can use it for immediate and future needs
|You have one lump-sum payment to the lender
|It can help if you need to reduce the monthly payments
|It is a long-term loan which may reduce interest, but if you choose a longer term, the interest payments can rise.
|It helps you pay off the loan faster than paying one after a long time.
A debt consolidation loan could be apt if you have only the goal of consolidating debt. You can tap personal loans to accomplish different goals like car purchases, urgent cash needs, or home renovation.
Best Personal Loans That you can tap for Debt Consolidation
Personal loans are usually unsecured. It implies any collateral requirements do not back them. Here, you can receive a lump sum amount and pay in small and easy instalments for up to 12-5 years.
Here you make a single payment each month at a fixed interest rate. The interest rates on credit cards keep accumulating until you pay the dues. Using a personal loan to consolidate debt can benefit you on the part of credit score. It can help improve that. With manageable payments and fixed interest, you can pay off the loan quickly and in easy instalments.
Check the below personal loans that you can tap to consolidate loans.
1) Bad credit loans
These loans are highly advisable for individuals facing rejections from mainstream lenders due to credit issues. If a lender denies your application on the ground of – pending loans, missed payments, CCJs, IVAs, or loan defaults, bad credit loans can help.
You may qualify for debt consolidation with these loans by proving your affordability.
2) No guarantor loans
There is no better way to save money than chasing debt consolidation loans for bad credit UK with no guarantor from a direct lender like Loanpalace. No guarantor facility allows one to qualify for a minimal amount without any credit score hurdles or hard credit screening. It is ideal for releasing some cash early without any third-person involvement.
- Payday loans
Though these are best for emergency purposes, you can tap these if you have sufficient payment capabilities. Identify the APR and interest rates. We provide the best payday loans with 12-month repayment to consolidate debt in easy monthly instalments. With this, you can also consider paying off these loans early if your finances allow you to.
If you do so, you can witness a significant jump in your credit score., The payday loan is a high-interest loan that requires making consistent payments. Choose the loan if you have no other option left to consolidate debts.
4) Guaranteed loans
These loans are the best for bad credit individuals looking for any purpose loans with greater flexibility. Here, you can use these loans for debt consolidation if you meet either of the conditions:
- Provide a guarantor over the loans
- Share sufficient income to qualify for the “guaranteed loan” approval
- You can provide collateral matching the amount you need in the absence of a guarantor or adequate income source.
The amount you can get depends on the situation you choose out of these and the repayment tenure and capability.
5) Unemployed loans
As the name suggests, these loans are specifically for jobless individuals or persons in-between jobs to meet hassle-free requirements. Individuals can use these for long and short-purposes as per their financial potential. Persons may qualify for these loans by providing a regular income source. If you need a short-term loan, income from unemployment benefits can serve the purpose.
In case of a long-term or more flexible amount, you may need to provide either a guarantor or additional income proof to get immediate loan approval.
Unemployed individuals struggle to qualify for other personal loans. So, if you need to consolidate loans as an unemployed, you can tap these without hesitation. It comes with repayment flexibility attached to your circumstances, finances, and the liability attached.
6) Debt Consolidation loan
The initial part of the blog reveals the most about it. Yes, you can use the debt consolidation loan for the very purpose of getting out of the debt trap. With no strenuous credit checks and collateral, you may easily apply for and qualify for the loans.
You must not choose it if:
- The APR is higher than your existing debts
- Your debt consolidation is costlier than debt settlement
- When you are planning a big-ticket purchase- car loan, house loan, etc
- You have a very bad credit score. The credit check can impact the credit score further.
You must be vigilant and informed while choosing the right product for your needs. Before agreeing to the terms, ensure it does not impact your bottom line.
How Does Loanpalace make it all easier for you?
As responsible lenders at Loanpalace in the UK, we deeply analyze individual circumstances, finances, and requirements. After concluding, we provide apt personal loans to individuals to consolidate loans at reasonable terms. You do not need to worry about falling behind payments or defaults with us.