Debt Consolidation Loan Consequences

If you are worried about debt then you may be worried what debt consolidation solutions are available and any potential debt consolidation loan consequences. It is important that you are aware of any of these consequences as well as any consolidation advantages.

Debt Consolidation Loan Consequences

The main consequence of a debt consolidation loan is that your unsecured debt will now, in most cases, be secured against your home. This means it is essential for you to commit to making the monthly payments for the full duration of the debt consolidation loan term.

Failing to make payments to the debt consolidation loan means that your home is at risk of repossession. If you cannot commit to the loan payment then there are alternatives which allow you to consolidate debt without a loan (debt management plan).

Another potential debt consolidation loan consequence is with your credit or store cards. It is well advised that you destroy these cards or put them away in a hidden but safe place, so you are not tempted to get into any further debt. If you do fall into further debt you will be increasing your monthly payments, which is the opposite purpose of seeking a debt consolidation loan.

To discover more about the consequences of a debt consolidation loan, contact the Debt Consolidate team directly on 0800 0481 770 or fill in our Quick Enquiry Form for a call back.

LOANS MAY BE SECURED ON YOUR HOME. THINK CAREFULLY BEFORE SECURING DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR OTHER DEBTS SECURED ON IT. IF YOU ARE THINKING OF CONSOLIDATING EXISTING BORROWING YOU SHOULD BE AWARE THAT YOU MAY BE EXTENDING THE TERMS OF THE DEBT AND INCREASING THE TOTAL AMOUNT YOU REPAY.

For mortgages and re-mortgages the overall cost for comparison is 8.5% APR variable and for secured loans 14.5% APR variable. The actual rate will depend upon your circumstances. Ask for a personalised illustration. A broker fee may be payable on completion, and will depend on your circumstances. For mortgages and re-mortgages this fee is typically between 0% and 3% of the gross mortgage amount, subject to a minimum of £2,495 and a maximum of £3,995. For secured loans, the fee is typically between 0% and 10% of the loan value.

DebtConsolidate.co.uk is a trading style of Ask Finance Ltd (Registered in England and Wales. Company number 4229724), a wholly owned company of the Harrington Brooks Group Ltd. Ask Finance Ltd is licensed under the 1974 Consumer Credit Act to carry on the business of consumer credit, consumer brokerage, debt adjusting and debt counselling. Consumer Credit License No: 507130. Ask Finance Ltd is authorised and regulated by the Financial Services Authority (FSA) - FSA No: 300490 - for the provision of mortgage advice and arranging insurance.