What is debt consolidation?
April 15, 2013
In 2012, after the introduction of a new consolidation loan, Glasgow Credit Union saw over £1.2m borrowed in just 14 weeks. Chief executive, June Walker, argues that it simply ‘highlights the scale of personal debt’ and many Scottish residents are turning to consolidation loans to pay off their existing debts.
If you’ve come to the conclusion that you can no longer afford to pay back your debts but are unsure of what to do next, it might be time to consider debt consolidation.
Debt consolidation is when someone with multiple debts combines them into one monthly payment, enabling you to feel more in control of your outgoings.
There are several different methods of consolidating your debts, some of which include taking out a debt management plan, or a debt consolidation loan. However, all potential debt consolidation solutions are dependant on your individual circumstances and require the professional input of an experienced adviser. If you’re serious about getting your finances back on track by consolidating your debts, why not call Scotland Debt Solutions today and our consultants will be more than happy discuss the options with you.
Debt consolidation is also an effective way of avoiding bankruptcy (or sequestration in Scotland) which is often a major concern for those struggling with debt issues.
The ability to consolidate your debts, as with all debt solutions, always depends on your personal situation. If you have a poor credit rating, consolidating your debts into one monthly payment may be more difficult, but it’s unnecessary to face it alone when a debt expert at Scotland Debt Solutions can help. Debt solutions like the Debt Arrangement Scheme or IVAs may be available to you despite a bad credit score and since interest rates on a debt consolidation loan can be high for those with poor credit, it’s important to consider all the options.
If you feel like your debts are spiralling out of control, it’s already a stressful time and looking for a solution on your own can be confusing. If you choose to speak to us at Scotland Debt Solutions, we’ll do the leg work for you and help you take the first steps to fixing your finances.
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