Benefits of consolidating debt

You could pay less tomorrow by consolidating debt today. Here’s how…

Benefits of consolidating debt

Simply by consolidating debt with a more affordable alternative could make a huge difference.

So, you have credit cards, maybe a store card or two and possibly even a high rate unsecured loan? Altogether you’re likely to be paying hundreds of pounds each month in repayments – and probably also in interest with very little coming off the total?

Consolidating debt could make a big difference to your finances – and your life

Imagine this, we could provide you with a low rate consolidation loan to replace your existing credit debts and even let you then choose a new, affordable monthly repayment that allows you to live your life without expensive credit bills holding you back.

Whilst reducing your repayments monthly repayments is great, you need to make sure that you don’t over extend the term of the loan otherwise you could end up paying back more in the long term. Getting the balance right is very important.

Here’s a real example of consolidating debt of £20,000 from credit and store cards. In this example you will see how, with a low rate secured loan, you could reduce monthly repayments straight away and also pay off credit faster.

Consolidating debt

If you add up the interest charges that you will incur next month alone on your current credit, it could be a scary figure

And if you’re paying that sort of figure every month – just think how much that works out a year, or even after 5, 6 or 7 years! It could be tens of thousands of pounds.

With Improve Finance, not only could we significantly reduce your monthly repayments by consolidating expensive debt, but with a lower rate of interest and an appropriate loan term, the amount you pay in total could also be less compared to the way you could be repaying your existing credit and store cards – which, if like many people may be only at the minimum monthly repayments.

To benefit, you don’t have to have credit problems, missed repayments or anything other than the fact that you have credit totalling £10,000 or more – and you would like to pay less for it each month. Plus, have an end date that you know it will be repaid in full.

If you’re thinking of consolidating debt with a secured loan – make sure you can meet the repayments

A consolidation loan is secured against your property and as a responsible loan broker, we do the best we can to make sure that your monthly repayments are affordable for you. To ensure your outgoings stay affordable however, once you have used the loan to pay off your credit and store card balances, you must ensure you cancel these accounts and do not continue to spend on the cards again to accrue further debt.

Like a traditional mortgage, a secured loan has its risks in that if you fail to meet your monthly repayments, and continue to do so, your home may be repossessed. Therefore it is down to you to get rid of the cards so out of temptations way!

See the difference of consolidating debt instantly with our debt consolidation calculator…

See how to improve monthly finances by next month
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TYPICAL

10.8%

variable.

The consolidation loan example above includes a broker fee of between 0% and 15% (maximum £2,995) depending on the loan size selected. A 2.5% lender fee has been included but may vary depending the lender and size of the loan. The example is for illustration purposes only. Loan rates are dependant on individual circumstances and criteria. When consolidating credit, depending on how much you wish to reduce your monthly outgoings and the interest rates and balances of the credit you are consolidating, you may pay back more if extended over a longer term. You should think carefully before taking a secured loan against your property. Your home may be repossessed if you do not keep up repayments on the secured loan.

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TYPICAL 9.5% APRC variable

Rates from as low as 4.6% APRC variable. Our highest rate is 39.9% APRC variable allowing us to help customers with severe credit problems. 51% or more of customers receive our typical rate of 9.5% APRC variable OR LOWER.

Secured Loan Representative Example: If you borrow £15,000 over 15 years at a rate of 9.5% APRC variable, you will pay 179 instalments of £152.35 per month and a final payment of £302.35. Total amount payable of £27,573. This includes the net loan, interest of £10,623, a broker fee of £1,500 and a lender fee of £450. The overall cost for comparison is 9.5% APRC variable.

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.

Loans subject to status and secured on residential property by way of second charge. Consolidating debts may increase the term and total amount payable. Minimum age 18 years. Improve Finance is a credit broker using a representative panel of lenders who specialise in second charge mortgages and receive a commission from the lender on completion of a loan. We charge a fee for our broking services of between 0% and 15% and will inform you of this fee before you decide whether to proceed with the loan.

Rates and fees correct as of 21.01.2018. Improve Finance is a trading style of Willows Finance Limited, Brocastle, Bridgend CF35 5AS. Company registered in England. Registration number 6678545. Authorised and regulated by the Financial Conduct Authority under number 670052, registered under the Data Protection Act No. Z1447660 and are a member of the Association of Finance Brokers.

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