Can reduce your debt payments in terms of the amount you pay each month.
Credit card debt consolidation can be a way of bringing down the interest rate on your debt and reducing the number of creditors that you owe money to.
Debt consolidation involves taking out new credit to pay off your debts. It is completely different from debt management, which is all about working out and negotiating affordable payments with your creditors. In other words, debt consolidation is a quite separate strategy.
On the surface of things, it can indeed be a good way to go; but it’s not always as easy as that, and it can be easy to be caught out. In fact, going down the credit card debt consolidation route can, in certain circumstances, involve you in extra costs unless you have expert advice that can secure the best, and the right, deal for you.
Make a change for a better future
Consolidating debts is sensible only if and when:
We will advise and help you at every stage
If you feel that your debts have got beyond your means, we can help you to find a way forward.
Contact the team at TC Debt Solutions for a confidential chat to discuss the pros and cons of credit card debt consolidation.
Quick Summary
It is true than consolidating your credit card debts can make them easier to manage: you have only one payment to think about and make each month, so it is easier to budget.
There’s an element of convenience too in that you have only one creditor to deal with.
On the downside, however, many credit card consolidation options come with some hidden costs that might not be so immediately obvious.
For example, there may be higher interest rates or the loan period might be longer, making the deal much more expensive even if it is promoted as free debt consolidation with no set-up fees.
The truth is that having a high level of debt, or having missed payments on your debts, will almost certainly have had an impact on your credit file and have affected your ability to borrow money at competitive interest rates.
You really need to be totally clear about the true size of your monthly payments and the number of payments you will have to make.
In the most extreme debt cases, debt consolidation loans for bad credit may be secured loans against your home – and you should think long and hard before taking this kind of option as failing to make repayments carries the real risk of losing your property.
I would like to take this opportunity to say thank you. I’ve never felt like you’ve judged me or looked down on me which was my big worry in going to anyone about my debt. I feel like I can finally get on in life so thank you. I would have no hesitation recommending you.
focus on your pattern of debt
As well as looking at the deal itself, including any hidden fees and costs, it is important to think about the future and what could happen.
What would happen if, for example, you fell ill or you or your partner were made redundant? What if interest rates go up (if you are signing up to a loan with a variable rate of interest).
Realistically, could you cope with the repayments under such scenarios, which can so easily happen.
change for a better future
Above all, it could be a good time to focus on your pattern of debt.
Are you perhaps finding yourself using your credit cards to pay household bills and living expenses. If this is the case, then it could be a sign of a much more serious debt problem that requires closer inspection and exploring debt help that is available.
If you are in this kind of situation, you need to get help to sort your debts rather than looking for a new loan, which will just mean that things go from bad to worse.
At TC Debt Solutions, we can help you to negotiate with your creditors and arrange a debt repayment plan.
We can also help you when things have beyond the point where you can realistically expect to be able to repay your creditors. We understand how these things can happen to anyone in a given set of circumstances.
What is important is to change the future for the better for you and those closest to you.
If you are considering credit card debt consolidation or would like to explore your other options, complete our short form and we will contact you.
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