Can you borrow enough to consolidate all of your debt?
The advantages of debt consolidation may be lost if, after taking a loan and paying off some debts, you still have outstanding balances on other cards or catalogues which you still struggle to pay. If you owe so much that it will be impossible to consolidate everything into one loan, then perhaps consolidation is not the right answer.
Can you discipline yourself to avoid taking out further credit?
If by obtaining a cheaper loan, all you will do is to go back out and enjoy yourself again or worse put more things on credit then all a consolidation loan will do is eventually put you into a worse debt.
Can I really stop using credit cards?
The greatest mistake made by some people who consolidate their credit cards is not to cut them up after clearing the balance. If you don’t sooner or later temptation normally proves too great and you start to build up more debt once again.
How Much Will it cost over the term ?
Whilst a debt consolidation loan may reduce your monthly repayment how much extra will it cost over the new term, than if you had managed to keep to repaying your existing debt over its original term?
How much can your really afford?
All too frequently people take a new loan out without really knowing how much they can afford. This often means they are doomed to fail as if you struggle to meet other essential bills, like your weekly shopping, and before too long you start to use the old credit card again and your debts start to build up once more. This is why we believe our service is better. As part of our initial consultation we will help construct a realistic financial statement to work out how much you can afford. We will also offer you debt counselling and debt advice as part of our debt solutions package.
