Debt Consolidation Services

What is Debt Consolidation?

Let's say you have numerous independent debts, for example Credit Card Debt, Bank Loans, overdrafts etc. Debt Consolidation is simply a means of taking all these debts together and gathering them into one affordable monthly payment. Debt consolidation will streamline and simplify your debt problems.

All of your existing debts will be paid by one new ‘consolidated’ loan. The repayments on this new loan are usually lower and over a further extended period of time. Therefore, your monthly payments will be easier to manage and maintain.

Debt Consolidation Example

Let us look at a typical client example:

Our Client has informed us that they have the following unsecured debts:

• Bank Loan of €8,000
• Overdraft €2,000
• Credit Card Bill €2,000
• Store Card €500

The above debts total €12,500.

Debt Consolidation Solution:

• The Client borrows a debt consolidation loan of €12,500 to pay off all of these debts.
• The interest rate associated with this loan is lower (considerably lower than the rates charged on credit cards) than the present interest rates being charged to the client.

• The one monthly repayment has replaced numerous monthly payments. The new monthly payment is also lower than the clients previous monthly repayment.

• The client has the option to extend the repayment period to reduce the monthly payments even further.

 What are the Key benefits of Debt Consolidation?

The key benefits could be summarised as follows:

• All your previous debt repayments are converted into one standard monthly payment.
• The amount you will pay on a monthly basis will be lower than your previous monthly payments. This will ease considerably the pressure on your personal budget.
• Interest rates associated with Debt Consolidation are normally lower than interest rates associated with other forms of debt like Credit Cards etc.

What are the disadvantages of Debt Consolidation?

• Under Debt Consolidation your monthly debt repayments are normally lower than your previous debt arrangements. This eases monthly financial pressure on the client. However, it stands to reason that a lower repayment will obviously mean a longer repayment term.

• Always read the terms and conditions of any financial product. Debt Consolidation loans are no different.

Is Debt Consolidation right for me?

The decision to opt for Debt Consolidation will obviously depend on the clients specific set of personal circumstances.  However, in general, debt consolidation may be of interest to people who have the following difficulties:

• If you have genuine difficulty in making present monthly loan repayments.

• If you cannot deal with the stress and pressure of dealing with numerous creditors.

• If you present debts consists of loans or credit cards with excessive interest rate charges and penalties.

• If you are only paying the minimum monthly amount or below on your credit card(s).

• If you want to reduce your monthly budgeted expenditure from its present levels.

Where do I get more information?

Our experienced debt consultants are on hand now to give the advice you require to make an informed decision. Please feel free to read our extensive FAQ section for further information on this and other types of debt solutions.