Debt Consolidation Advice


If you owe money and pay your debts off monthly, you’re probably paying quite a sum in interest. The good news is that you can save a substantial amount by consolidating your debts and then quickly paying them off. In addition, consolidating your debts will reduce your monthly outgoings and also take the hassle out of having several different debts to pay and reduce the worry of destroying your credit rating.

Shop Around For a Good Deal!

Do your online and offline research carefully and do not settle for the first thing you come across. Common sense dictates that you should check at least 3 consolidation companies. Each loan consolidation lender will claim to be the best out there, so don’t be fooled by false promises and redundant statements. Focus your research on the key terms which are:

  • Conditions of a missed payment
  • Repayment incentives and penalty for early payment(Yes, there usually is a penelty for earlier repayment).
  • Current interest rates
  • Possibility to pay off the loan early, or postpone payment
  • Validity of the lender(whether UK or US based, company VAT number, how long in business, etc)

Prepare and Pre-plan


The best way to prepare yourself and to determine the best course of action is to use debt consolidation calculators which can be found online. These will give you an idea of how much you will need to repay each month. Remember that debt consolidation process does not happen overnight! Keep track of your bills and living expences to see how much you need to pay off and how much money you need in order to survive.

Take Time to Fill Out the Application Form

When you find the most appropriate lender, you may begin the application process. You will be asked to provide information about all your college loans and any other laons that you may have. You will also be required to forward your income verification to the lender. In case you do not have a good credit rating, you may be required to provide a cosigner. Additional references may be requested. Application process usually takes about 10 to 15 minutes, however once your application has been filed, it takes a couple of months before the consolidation period begins, so please plan ahead.