FOREX Magazine

Missed payment charges. Although you
want to avoid this, if you do miss a
repayment, what are the late fees and how
will this affect what you owe?
Debt consolidation loan options
Some financial institutions offer debt
consolidation loans, to help you get your
finances back on track. Other options
include: personal loans, overdrafts and
balance transfers low or interest-free credit
cards – an option if you only have credit card
debt. These are all known as unsecured loans
and tend to cover amounts from £1,000-
£25,000.
If you need to borrow more money, you might
want to consider a secured loan – where the
amount you owe is ‘secured’ against things you
own, such as your house or car. It is important
to remember however that, although they
often have lower interest rates than
unsecured loans, if you don’t meet your
repayments you might end up losing your
possessions.
Managing monthly repayments
If you’re consolidating your debts, there are
two important rules to follow:
Make sure you meet your monthly
repayments. Getting charged late fees and
accruing additional interest will mean you
owe more money in the long run.
Make a repayment plan and stick to it. Don’t
be tempted to use the loan for something
else, and try not to borrow any more money
in the interim.
Consolidating your debts can be an
effective way to regain control of your
finances. With multiple loan providers on the
market, it’s important to choose the one that
best meets your needs. And with a bit of
advance planning, you could end up not just
clearing your debts but maybe even saving
some money in the process.
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