Certainly, there are huge costs associated with making purchases through credit cards, as not only are the interest rates very high, but late payments also entail penalties and lead you to more debt. It is for escaping a financial mess in the future that you can opt for a credit card debt consolidation loan. But you need to consider various aspects to find a suitable such loan for your circumstances or you may fall into crisis again.
A big advantage of the loan is that you immediately get rid of all those creditors who threaten you with legal consequences and demand heavy penalties on the debt.
Credit card debt consolidation immediately pays the remaining amounts to your creditors. Then you pay small monthly payments to the loan provider. Obviously, now your old payments will be merged into the new loan with added benefits like low monthly payments, low interest rates, and elimination of creditors.
You can take out the loan as a home equity loan or simply as a personal loan. This means that the loan can be availed in secured or unsecured options depending on your needs and your circumstances. The secured loan is for homeowners as collateral is required for any amount between £5,000 and £75,000. Its benefit is for availing low interest rates. For renters or non-owners as well as homeowners, an unsecured loan option can also be explored without collateral. But the interest rate will be slightly higher and you can borrow £3000 to £25000 for repayment in 10 years or sooner.
Since your concern is to find the loan at a lower interest rate, first check your credit report for any errors in it. Get the report from all agencies.
Make sure you have searched the internet extensively to compare as many credit card debt consolidation loan offers as possible. Take out the installment offers and settle for an offer that has lower rates than the rates on your old payments. Also pay attention to the additional costs of the lenders. Stick to timely repayment to get out of any crisis in the future.