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Sort out your debts with one loan | Unsecured personal loan

Leading unsecured personal loan for debt consolidation

For some of us, the concept of taking out a loan to consolidate existing debts is a bit like the old saying “rob Peter to pay Paul”. If we are desperate to get out of debt, then taking on more debt seems the last thing we should do.

Sometimes taking a new unsecured personal loan to consolidate all your current debts can be a useful way to make a fresh start financially. It means that you can pay off everything that you currently owe, and end up with just one affordable monthly payment.

An unsecured personal loan can be a particularly good solution if you have credit card debts and are paying a high rate of interest on them. You’re doing your best to pay something off every month – but all you’re actually paying off is the interest on the debt, meaning that your actual debt is not going down at all. In fact, if you do still use your card occasionally your actual debt will continue to rise!

Many of us who are in debt feel a deep sense of shame, and just want to bury our heads in the sand and hope it all goes away. But it won’t. The only way to actually make it go away is to face it head on and start to do something about it.

If it’s any comfort, you are not alone!

Recent research from Sainsbury’s Bank indicates that around 180,000 people may be considering taking out an unsecured personal loan for debt consolidation purposes, and around a third of all loans currently being taken out are for debt consolidation purposes.

So there should be no embarrassment about applying for an unsecured personal loan to consolidate your existing debts. Quite the opposite! It shows that you are serious about getting your finances back on an even keel again.

According to Simon Ranson – Head of Banking at Sainsbury’s Bank: “Personal loans can be a fantastic debt consolidation tool, enabling borrowers to lower their monthly repayments and unify their debts and payments under one provider.”

However, you may be worried that because of your other debts your credit rating is not particularly good at the moment. Lenders like Loans 2 Go, are willing to look at the bigger picture and not reject you just because of your credit score. The key thing is the affordability of the loan.

When you are sorting out your loan both you and your lender need to be confident that you can afford to make the repayments. This is critical! There is no point in you taking out a loan to consolidate your debts that just ends up getting you into more debt because you can’t afford the repayments.

So find a lender that you can trust, and be honest with them about how much you can afford to repay each month so that the loan can be arranged over the best repayment terms for your situation.

When taking out a loan also make sure that you find one with no set up fees and that there would not be penalties should you want to pay the loan off early.

As well as affordability of the monthly repayments, the other key thing that you need to ensure when you take out an unsecured personal loan is that you do not get into any more debt. You have a chance for a new start and don’t want your finances to slide into chaos again! So plough everything into getting back on your financial feet. Why not put away those credit cards so that you are not tempted to spend more than you know you can? Make sure you meet your loan repayments and perhaps even take on some extra work for a while to build up a financial buffer so that if unexpected expenses come along you are ready to meet them.

Let 2017 be the year when you finally find financial freedom! If you would like to talk to Loans 2 Go about an unsecured personal loan then why not get in touch and let us help you get things moving forward in a positive direction!

*All figures and rates correct at time of writing