A debt consolidation with a personal loan is ideal in where you have several short-term, high-interest debts (e.g. credit card debts, payday loans and overdue bills). An unsecured debt consolidation loan alows you to consolidate all your debts under a single loan with a single repayment. Credit-cards have very high interest rates, meaning that you could could end up paying double or even triple the original sum. Unsecured debt consolidation loans are typically lower-interest, with a set time frame.
Example:
Helen has three seperate credit card debts totalling $9,000. Each card carries a different interest rate, and each payment is due at a different time. This makes it very difficult for her to keep track of your finances and ensure that repayments are paid on time. She is charged an average interest rate of 19% per year and has already paid more than the value of the original debt. Deciding that enough is enough, Helen applies for a debt consolidation loan. She uses the money from the loan to pay off her credit debt. Helen now has a loan for $9,000 over three years, with an interest rate of 12.35% per year. Her monthly repaymentis more thant it was previously, but in three years she will be beyond debt.
Debt consolidation loans may also carry various fees. To find out if an debt consolidation loan is appropriate for you, contact Beyond Debt. Or, to consider your options, take a look at our Debt Solutions page.
NB: Beyond Debt is not a lender. They do not provide debt consolidation loans. They can provide advice for those experiencing difficulty with their debts. If debt consolidation is appropriate a Beyond Debt Consultant will be able to identify this.
Debt Consolidation
A debt consolidation with a personal loan is ideal in where you have several short-term, high-interest debts (e.g. credit card debts, payday loans and overdue bills). An unsecured debt consolidation loan alows you to consolidate all your debts under a single loan with a single repayment. Credit-cards have very high interest rates, meaning that you could could end up paying double or even triple the original sum. Unsecured debt consolidation loans are typically lower-interest, with a set time frame.
Example:
Helen has three seperate credit card debts totalling $9,000. Each card carries a different interest rate, and each payment is due at a different time. This makes it very difficult for her to keep track of your finances and ensure that repayments are paid on time. She is charged an average interest rate of 19% per year and has already paid more than the value of the original debt. Deciding that enough is enough, Helen applies for a debt consolidation loan. She uses the money from the loan to pay off her credit debt. Helen now has a loan for $9,000 over three years, with an interest rate of 12.35% per year. Her monthly repaymentis more thant it was previously, but in three years she will be beyond debt.
Debt consolidation loans may also carry various fees. To find out if an debt consolidation loan is appropriate for you, contact Beyond Debt. Or, to consider your options, take a look at our Debt Solutions page.
NB: Beyond Debt is not a lender. They do not provide debt consolidation loans. They can provide advice for those experiencing difficulty with their debts. If debt consolidation is appropriate a Beyond Debt Consultant will be able to identify this.