Mortgages by Niels

Debt Consolidation Bolton

A loan to relieve you from your debt can be exactly the thing that can have you get back on track with the circumstances life comes with. If you own a home we can do exactly this. A home equity loan can replace high interests loans to reduce the pressure and give you room to get back on track. Our debt consolidation team in Bolton can provide you with options that are best suited for your needs.

    Will consolidating your debt hurt your credit?

    Consolidating debt is a way to bring together all your debts into one account with one lender. Once you have set up this arrangement this will be a way to create payment relieve and repair you credit. Consolidation will have a credit check appear and lower your credit score for the short term only. Over the long term by consolidating all your payments into one manageable one it will improve your credit score.

    35% of your score is rate on your payment history and making on time payments to one payment only will improve your score significantly over time. Adding in a mix of revolving credit like a credit card and a personal loan is highly suggested for an improved credit score.

    How much does a debt consolidation company charge?

    There are many debt consolidation companies out there that typically charge 15 to 25% of the amount you have agreed to pay. Before you consider this having a deep dive into your finances are suggested. One of the tips is pay of first the highest interest debt you’re carrying. Another option for home owners is looking at pulling out a home equity loan to consolidate your debt instead.

    Is it smart to consolidate debts?

    Between all your debts it can be hard to get ahead. To bring all the payments into one account with one lender can be just what you need to finally get ahead. Before you’re the route of consolidating all your debts, it will be important to understand the pros and cons. Some of the pros will be that it will streamline your finances, it could lower interest rate, and may reduce your monthly payment. Some of the cons are that it will come with an extra cost, it most likely not solve the underlying financial issue, and it may encourage increased spending.

    How can I get all my debt into one payment?

    To bring all or majority of current debt payments into one can be done by finding one lender that will pay off those debts they will take on instead and with one monthly payment. An advantage will be if the majority of your debts are credit cards. Credit cards are often at a higher interest rate and by choosing consolidating your debt may find a lower interest overall.

    What is the quickest way to get out of debt?

    There are quick ways to get out of debt and at a cost. Before you consider that route, it is most important to understand how you arrived in your position you’re currently in. We have compiled some items to consider:

    • Track your finances, create an inventory of all your spending and income.
    • Create a budget, add in what you need and leave out your wants.
    • Create a plan to pay down your debt, consider that are other ways beside your plan.
    • Pay more than only your minimum payment.
    • Your new budget to relieve you from debt, continue to develop this budget as you become more aware in your finances.
    • Budget for the family for those not living alone.
    • Negotiate your current debt with your creditors to look at the possibility of a lump sum payment.
    • Seek out support from a professional.
    • Implement a strategy like the snowball strategy, this is done by paying one debt of completely while making minimum payments to the other debts.
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