Debt Consolidation Loans and Re-mortgages
People often take out consolidation loans to reduce interest charges on their debts and combine payments for ease of use. But they often don't realise the risks they leave themselves open to. Many people lose their homes through being unable to make payments. Debt Management offers similar benefits, but without any risks.
Disadvantages
- You could lose your home if you are unable to keep up repayments!
- Consolidation loans are usually paid off over a longer period of time. Even with lower interest rates, you will pay more in the end.
- It costs money to settle an existing loan, such as paying the redemption penalties.
- It costs money to set up a new loan. If a Consolidation Service is involved, their commission can be a significant expense too. You will end up paying more.
Advantages
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Lower interest rates
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Lower monthly payments
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Dealing with a single creditor
There are very few circumstances where an MRA Debt Adviser would recommend a Consolidation Loan. Debt Management offers nearly all of the advantages, without the risks.
Useful Consolidation Links
WikipediaMSN Money - Debt Consolidation is a dangerous game
Debt Management Testimonials
I want to thank MRA for all the advice and help you gave me when I was contemplating bankruptcy ...
Mr S., East Barnet, HertsWhat impressed me was the understanding and empathy shown by the MRA debt counsellor ...
Mr & Mrs E, West SussexThanks again for your help - its made an intolerable situation much easier.
Mrs W, from SheffieldRead more debt management testimonials.