Debt Consolidation

Debt consolidation simplifies your fiancnes by putting all your debts into one single repayment. For example, a Debt Management Plan is a one way to consolidate your debts because you only pay one amount every month which is then distributed amongst your creditors.

At DEBTPLAN Direct, we act on your behalf to negotiate for your creditors to accept a lower repayment each month ensuring the new repayments is as affordable as possible for you.

By choosing to consolidate your debts through a debt management plan, you may extend the time in which you repay your debts, which could increase the total amount owed if interest rates and charges are not frozen. However, in the majority of cases DEBTPLAN Direct can freeze interest and charges.

Our expert team are ready to listen and provide the right Debt Management help for you

• Affordable monthly repayments
• We handle creditor letters and phone calls
• Designed to meet your specific needs
• Clear debts on successful completion

Credit card debt consolidation

Credit card consolidation is the process by which you transfer the balance from one credit card to another card which is offering a 0% or low rate of interest. This solution can help to repay the debt back if you can stick to a disciplined repayment plan by making the repayments on time before the 0% credit card offer ends and without spending any further money on the card.

From our experience we have found that credit card consolidation often leads to an increase in debt as people are not able to pay off the debt as they continue to spend on the new card.

Your credit rating could also be affected as a result of transferring balances.

Two key to check for credit card consolidation:

• Check how long the promotional rates are available for
• Check the interest rates / APR when the promotional rate ends

If your credit card debts are spiralling out of control, we recommend you choose a more effective debt management solution.

Unsecured Loan Consolidation

A loan is another way to pay off multiple debts so that you are left with just one unsecured debt to repay. One of the advantages of combining small debts into one larger loan is that it typically means a lower interest rate overall.

As with credit card debt consolidation, you need a good enough credit rating to qualify for the consolidation loan. Personal loans also have fixed repayment rates, so you must be able to fit the repayments into your budget.

Remortgaging For Debt Consolidation

Releasing equity from your property through re-mortgaging is another way to clear your personal debts. You might be able to do this with your existing lender, or you might have to switch to another mortgage lender for the best rate.

However, this type of lending could place you at a higher risk of negative equity if the value in your home drops. If you cannot keep up the higher mortgage repayments, you could be at risk of repossession.

Secured loan

You could also look into a secured loan to consolidate your debts. A secured loan is a loan secured against a property or asset. It can be an effective way to consolidate your debts; however, if you cannot keep up the repayments on a secure loan, you could face serious repercussions including court action. Therefore, we recommend that you explore other possibilities in the first instance.