Are you struggling to manage finances due to pending debts? Not being able to pay rent, day-to-day costs, and unexpected expenses leads to restlessness. Inability to repay these pending payments results in penalties and high interest costs. Is there a better way to tackle this?
Yes, debt consolidation loans in Ireland are the right solution here. These loans help you combine all your pending payments (rent, everyday costs, credit card debt) into one manageable monthly payment. You pay only what you can afford each month, without any surprises. It reduces stress and allows you to have a more organised financial life.
Take your first step to a debt-free life with Gobigbucks today! We provide affordable debt consolidation loans in Limerick, Cork, Belfast, Dublin, and other surrounding areas. Get a loan on your own terms as part of a face-to-face interaction. It is because we prioritise clear and well-educated finance solutions!
A loan for debt consolidation is a process of combining multiple pending debts into a single repayment date and amount. You deal only with one creditor instead of paying separately.
Merging payments reduces the interest, monthly costs, and total loan expenses on the loan. Therefore, you can save money on your regular debt payments. It is an ideal solution for individuals struggling to maintain and pay over 6-7 payments every month. You can improve your credit score by consolidating the costliest debts first.
Avoid consolidation loans if you are seeking one to eliminate debt. Debts would not go away, nor would the interest stay low every time. The terms you get depend on credibility and affordability.
You can consolidate debts in a secured or an unsecured way. It all depends on your affordability and financial needs. Individuals with good credit scores and sufficient income may be eligible for unsecured, low-cost debt consolidation loans available online. Alternatively, one with insufficient salaries and credit scores may consider a secured loan. It helps get a higher amount at low interest rates and affordable terms.
Let’s say you need help with paying the following debts:
Here is how a loan may help you in merging your debts:
| Scenario | Before debt consolidation | After debt consolidation |
|---|---|---|
| Debts |
|
A single loan of €12000 at 8% interest rate |
| Monthly payments |
|
You pay only €320 to us monthly after debt consolidation. |
| Interest paid over time | €3200 (estimated), High | You pay only €1600 |
Money saved on monthly payment: 530-320= €210
Money saved on interest: 3200-1600= €1600
WARNING:
You can consider a consolidation loan if you want to minimise the monthly payments or liabilities. However, you must ensure clarity while looking for a loan to consolidate debt. Here is who and why one should consider merging pending payments:
| Who is a debt consolidation loan for? | How will it benefit you? |
|---|---|
| Individuals who pay high interest on debts | The loan reduces the overall interest paid over time |
| Struggling to keep up with monthly payments | One fixed monthly payment reduces the hassle |
| Wants to improve credit score quickly | Consolidating high-interest debts and paying timely boosts credit score |
Individuals seeking to reduce interest rates, lower monthly instalments, and improve their credit score may benefit from this loan.
Note: Avoid taking out a loan to consolidate debts if the new loan arrangement does not help you save money or if you are only three months away from clearing your dues.
A bad credit debt consolidation loan helps you clear dues, improve your credit, and get better interest rates later. It simplifies your loan repayments into manageable instalments. However, it also comes with certain risks.
Things to consider:
Before applying for debt consolidation loans for a bad credit score, consider the following:
High interest rates
Obtaining a loan with a poor credit history means securing competitive terms. Therefore, compare and choose the best debt consolidation loans for bad credit that match your affordability.
Eligibility criteria
You should meet the basic criteria to qualify for a loan with a low credit score. If applying with us, you must:
Getting a secured loan
Consider a secured debt consolidation loan only if you can afford the payments. It will help you obtain a loan with a larger amount at a lower interest rate and for a longer duration. However, you may lose your asset if you default on it.
Risks to consider:
Understanding the risks associated with debt consolidation loans is crucial before applying. It will help you avoid potential fees. Here are some to consider:
A long commitment to debt clearance
The loan lasts for 12-84 months or more and hence, requires consistent payments. It may take longer to get debt-free if you choose a longer repayment term.
Impact on your credit score
Missing payments, rollovers, or defaulting on the loan can significantly impact your credit score. It may take time to recover from the impact.
Fear of debt-trap
Accumulating new debts during the loan payment period may lead to a debt trap. You may struggle more if you suddenly lose the job. Still, there is a way to survive if you consider unemployed debt consolidation loans for better financial management. Consult us immediately for an alternative payment plan. It matches your current affordability and reduces the likelihood of loan default by 90%.
We keep the process small and easy to follow for our customers. Here is how you can consolidate debts step-wise to improve your finances:
a) Step 1: Organise your debts in order of highest interest, penalties, and total costs. Calculate the total amount you owe.
b) Step 2: Pre-qualify with us to know the approximate amount you may expect to pay on the loan. It helps you know the expected monthly payments, total repayable amount, and interest costs. It does not affect your credit score.
c) Step 3: Provide the required documents for further financial analysis. You must be ready with:
d) Step 4: Obtain a new agreement with revised repayment terms, interest rates, and total costs. We create one personalised to your finances. You can save a significant amount of money with this arrangement.
e) Step 5: Pay according to the fixed and predictable payment schedule. You can also set direct debits for timely payments.
Yes, debt consolidation and debt refinance are two different terms. Individuals often get confused between the two. Here is the clear difference:
| Debt Consolidation | Debt Refinance |
|---|---|
| Debt consolidation involves taking out a fresh loan to pay multiple debts in a single monthly payment | Debt refinance is the process of swapping an current loan with a new one to get better terms and lower interest rates |
| Consolidation involves merging multiple debts, such as credit cards, payday loans, and utility payments. | Refinancing applies to just one debt. For example, switching to a lower interest rate on a car loan. |
| A debt consolidation helps lower monthly payments, reduce interest rates, and overall loan costs. It simplifies finances. | A debt refinance loan reduces interest costs, improves cash flow, and helps one switch between fixed and variable rates. |
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