Could a consolidation loan help to ease the financial impact of Christmas?
Getting carried away with spending over the festive season is all too easy, and many people have used a number of credit cards to make purchases over the Christmas period, leaving them with high balances on a range of credit cards that charge extortionate interest rates.
If you have racked up a large level of debt on your credit cards this Christmas and you have little hope of paying much more than the minimum repayment on each card every month you could find yourself being hit with a massive amount in interest and repaying the debts for years to come.
A more sensible solution for those that have accrued a large level of debt on high interest credit cards over the festive period could be a debt consolidation loan, which is available on both a secured and an unsecured basis. Taking out a debt consolidation loan means that you can enjoy more structured repayments, making it easier to manage your finances, as well as being able to wrap up the balances from all of your credit cards into one lower interest loan, which could save you’re a fortune in terms of interest repayments.
For those with smaller balances on just one or two high interest credit cards, transferring the balances onto a 0% balance transfer credit card could prove a suitable solution. However, recent reports have shown that many UK consumers have three or more credit cards, and if you have been giving all of them a battering over the Christmas period and you are unlikely to find a 0% balance transfer card that will provide you with the credit limit required to transfer all of the balances, then a debt consolidation loan could prove the most affordable, manageable, and convenient solution.
Alisdair Milton
29th December 2006
More Information:
- General Loan Advice For Managing Debt
Debt is a really easy thing to get stuck in. Even if you are not extravagant monthly costs can spiral out of control, especially if you take your eye off the ball. So what can you do to avoid getting too far into debt and if you are there already how can you get out of it?
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It is easy for debt to get out of control. Student loans, losing your job, becoming ill or any number of other unforeseen events can easily cause debts to mount up.
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If it seems advertisements for debt consolidation loans are everywhere, it is because consolidated loans are big business. The primary reason for people taking out personal loans over the next year will be for debt consolidation.
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Consolidating debt is growing in popularity. The signs of this are everywhere. From television advertisements, to letters in your post box, offers of debt consolidation abound. Debt consolidation is a huge business and the primary reason for new personal loans is debt consolidation.
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