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Myths Surrounding Debt Consolidation and How The Right Information Can Get You Debt Free

When you are struggling with finances and find yourself wallowed in debt, do not hesitate to reach out to the experts for the right help.

With the increased number of loans, the task of timely payments has become an arduous one. Debt consolidation is one way to combine all your debt, rolling your multiple debts into a single account with one monthly payment. 

Debt consolidation basically helps you save money on monthly payments, interest, or sometimes both. It doesn’t rub out all the debt, but it can lead to lower monthly payments if you can secure a lower interest rate.

When should you consider debt consolidation?

You can consider debt consolidation if you find yourself viable enough to track and make payments on time. Also, if you find yourself looking for bailiff help amidst all this, you can tell maybe it’s time to consider debt consolidation as an option.

More often than not, people have preconceived notions about debt consolidation. Here we have debunked some myths surrounding debt consolidation loans to make it easy for you to pay them off and keep bailiffs at bay.

Debt consolidation loans cost a fortune.

It may seem paradoxical to borrow money to pay off debt. The interest majorly determines the cost of the loan you will have to pay off on it. The interest rate charged on your loan will primarily depend on your lender, even in debt consolidation, just like other loans. Nonetheless, what may differ here in debt consolidation loans it may cost you less than most other types.

Many lenders would lend you money on a debt consolidation loan without charging any extra fee, while

Debt consolidation pushes you into more debt

One of the most common and believed myths around debt consolidation loan is that it pushes you more into debt. However, in this case, getting into a debt trap will likely to happen when you don’t know how to spend your money responsibly. Have a robust budgeting system intact, and you will end up being more astute about your spending.

With proper debt relief plans in place, you can detangle your repayments and make them relatively simple. However, nothing compares to changing your spending habits when paying off debt; if you don’t change that, you may find yourself in debt again. Debt consolidation helps you ease your repayment process, preventing you from falling behind your payments. It’s a myth that it pushes you towards more debt.

Debt consolidation loans reduce the amount of your payment

The concept of debt consolidation works in a way that helps you pay off your existing debt to have you owe money towards just a single loan ultimately. So it doesn’t precisely reduce or cast aside your loan repayments; what it only does is that it merges them into a single one and simplifies your debt management process. It will only have you do is pay against this balance on a monthly basis until the debt is over.

However, keep in mind that debt consolidation is quite different from debt settlement; it is when you hire a firm for debt settlement that handles the case on your behalf of you and negotiates with the lenders. But it is quite risky as it can majorly impact your credit score.

Debt consolidation affects the credit score

Before handing out money to a borrower, some prefer to do a thorough credit check, and when it comes to consolidation loans, these checks are often more diligent as compared to other kinds of loans. This somehow affects your credit score even by just a few points, yet it does.

Despite the fact that consolidating your debt can actually boost your credit score, it certainly depends on how you manage the debt and repayments you make and when you make them. Timely repayments account for a significant part of your entire credit score. Hence a little dent in your credit score may be in your favour if you can keep up with the repayments and manage debt more efficiently.

These are the situations when you should consider debt consolidation
  • Consider it when you are entirely sure about repayment of the full loan
  • When you are sure about improving your spending habits, you can keep a check on unnecessary direct expenses.
  • You can go for this option when you are not exhausting all your savings when paying toward the charges and fees
  • You won’t find yourself taking up more loans, for that is an actual debt problem, and that is when you must consider debt advice service.

One other problem arises when you fail to make your timely repayments, you may end up having bailiffs banging at your door.

For the right bailiff and debt help, reaching out to professionals is a must. Bailiff Help Now is your personal approach to finance and rescue from all your debt-related problems. We are here to help you guide in dealing with bailiffs or do that on your behalf and write off up to 75% of all debts.

We have been helping people manage debt for over 15 years now. We understand that dealing with creditors and bailiffs can be daunting but remember that you won’t have to do it alone when you have our backs. Our bailiff expertise means that we will be there to assess your situation and provide you with the solution that best suits your circumstances.

So if you find yourself wallowed at the bottom of the debt pit, know that we are just a call away. With friendly, confidential, specialized services that include help with council tax bailiffs, offering assistance with a high court writ, and stopping bailiff enforcement in your homes, you will find your way out of the debt.

Speak to our qualified advisors for free bailiff help and advice today!

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