Looking for Debt Friendly Loans? – Have you a number of loans or credit card balances that you would like to consolidate into a debt friendly loan?
We have a number of options for debt friendly loans on this website, depending on the amount of loan you need and the length of time you want to take on repaying the loan back again.
Do you need debt friendly loans?
Before you would rush into a debt consolidation loan like this, you must make sure that this is going to be the best option for you.
Representative 277.5% APR - Representative Example: Amount of credit: £750 for 12 months at £119.21 per month. Total repayment of £1430.52. Interest: £680.52. Interest rate: 140% pa (fixed). 277.5% APR Representative.
The reason we highlight this is because when you take your outstanding balances of all your loans and credit card balances and add them up to get the total amount of debt you have, you also need to bear in mind two important things.
Two Things Worth Considering
When you are trying to total up all your debt accounts to see how much you will need for your need loan to cover all of your debt, you must check if there will be any fees or charges made on each account if you pay them off early.
If there is a fee or charge to pay your existing accounts off early, you would need to ascertain the exact amounts and then add this to your total, to ensure your new consolidation loan covers everything outstanding.
The second thing to remember before taking out a new debt friendly loan to consolidate all of your outstanding debts into one monthly loan payment, is the fact you will be paying interest on top of interest in your new loan.
This is because when you get a settlement figure for all of your old debts, it will include some interest payable as well as any fees. If you then add this to the new loan, it means you are effectively paying interest on interest.
The Best Solution?
Really, the decision is yours to make.
You could find that a new debt consolidation loan will considerably reduce your monthly outgoings and although it might stick in your throat that you are paying interest on top of interest, it could still be the best solution, but it’s your call.