What does debt consolidation mean?
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Answer:
Let's say you currently have 3 hire purchase agreements.
One for a car. One for a new kitchen, and one for a bedroom suite.
If you are paying (hypothetically) £250 per month for your car,£120 per month for your kitchen, and £60 per month for your bedroom suite, that is £430 per month on 3 different loans.
What a lender can offer you is enough money to pay off all three loans (consolidation) with the possibility of 'cash in hand' as well. With then only having the one loan the repayments per month will usually be quite a bit less.
If you do this, use only a nationally recognised company, and be wary of the fact that, although the payments may be lower, the repayment time may be longer.
stop spending
It means lumping all your debts together to make one.
You consolidate your bills/debts into 1 bill. Is it that hard to figure out?
It usually means you combine multiple small debts into one huge debt. After doing this, you can LIE to yourself and believe you 'paid off' your debts. This allows you to get even farther in debt without feeling guilty.
The aim behind debt consolidation is to reduce the payments or the interest rate. You make a single payment toward the loan instead many payments each month. This reduces your financial burden and you can have surplus cash left over. Credit counseling services offer debt consolidation loans. Check out the credentials of the credit counselor and find out if they are authorized by the government.
it means putting all your debts together so that you are only making one monthly or weekly payment... it makes life alot easier and saves you forgetting to pay a certain bill that has slipped your mind
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