Debt Consolidation - to consolidate or not to consolidate?

I have been looking into various debt solutions recently (for a family member, not for myself). I didn't realise there were so many! Typing 'Debt Solutions' into Google returns what is almost like a supermarket isle full of different products! Debt Consolidation. Debt Management. IVAs. Remortgages. Trust Deeds... the list goes on.

And with each of those products comes a range of different brands each offering that respective product. Some are cheap like the supermarkets own-brands, some are more expensive. Yet like a supermarket own-brand, does the price reflect the quality? Hmmm...

Anyway, after much deliberation, debt consolidation seems to be the one jumping out, saying "Pick Me!". It doesn't seem as drastic as some of the other options - just another loan, really. I am thinking of suggesting this to my relative, as they are not in any SERIOUS debt - I think they could just do with a few extra quid at the end of the month.

Before I do, I am putting this out to you, my readers. What do you think? Is debt consolidation a wise choice for someone who can meet their debt repayments. They just want to consolidate (pardon the pun) them into one easier to manage loan. They are certainly a far cry away from bankruptcy!

I found the most convincing information about debt consolidation here at DebtAdvisersDirect.co.uk. Have a look yourselves, and be sure to check out the blog too.

I'll wait a week for your responses & then it's either debt consolidation or... well, I don't know yet!

Thanks in advance :)

Debt Consolidation Loans

Debt consolidation loan; a need for debtors!!

If you are unable to manage your numerous debts and is missing your payments with different interest rates, debt consolidation loans is the best option for you. A debt consolidation loan is a personal loan that you may get while you want to opt for debt consolidation.

You may opt for debt consolidation, when you are unable to manage your several debts with different interest rates. There are some symptoms when you can opt for a debt consolidation loan:

1. When you are missing payments and becoming a defaulter
2. When you want to lessen your total payable amount
3. When you are facing trouble in paying different interest rates and want to pay a single interest.

To qualify for the debt consolidation loan you should have:

1. A stable income
2. A document listing your monthly budget.

You may also require some more information, according to the requirement.

Basically, debt consolidation loan has a lot of advantages:

1. It helps you to get out of debt.
2. It helps you to clear your pending debts.
3. It allows you to make a single payment against your multiple payments.
4. It allows you to make reduced monthly payment.
5. By opting for a debt consolidation loan, you can deal with a single creditor than a number of creditors.
6. It lowers or eliminates your interest amount.

However, there are several limitations of debt consolidation loan.

• It allows you to pay low monthly installments and interest rates, but it involves a longer repayment period. And you pay more to become debt free as a result.
  
• If you fail to make payment on time, you can loose your assets (if you have kept your assets as collateral).
  
• It gives short term relief to a borrower, it never stops from taking multiple loans, or cure his bad spending habits.

Mortgage rates - are you worried like me???

I'm on a fixed rate mortgage at the moment which ends fairly soon. Because of this, I have been keeping an eye on the mortgage market & the rates. I found this interesting article the other day which I thought I would share with you. It reveals how the Bank of England base rate affects your mortgage.

Not as expensive as expected

Thankfully, last weekend wasn't quite as expensive as I had thought. A quiet night in on Friday, day trip to Wales on Saturday & tea out at a friends house made for a fairly cheap weekend. I didn't even have to pay for the petrol to get to Wales... :)

Spent: £46.37

Remaining: £116.91

June result & July update

As planned, June ended just inside the budget (£3.36 left in my pocket).

July has started well. 7 days in and I have spent £36.72. I may have an expensive weekend approaching though, so it is a good thing I have had a cheap start.

Remaining: £163.28

In other news, I was reading an interesting article on Gregory Pennington's blog, a debt help site, about the cost of entertaining the kids over a year & how to budget this expense. The average total is an amazing £5000!!! With two kids myself, I was interested in working out my own average spends & looking for ways to save. Read the full article here >