Debt consolidation Loans can simplify your monthly finances and reduce the monthly cost of repaying your debts, freeing up cash for other things. It’s a simple idea – a loan large enough to pay off your other debts all in one go, leaving you with just one debt, and one payment to make every month.
Rethink your repayments
Life is just easier when your finances are thought out in advance. That’s the problem with smaller debts like credit cards, store cards and overdrafts: it’s all too easy to take on debt a bit at a time, without thinking about the consequences. Before you know it, you owe thousands – and you’re paying back hundreds every month.
Consolidation gives you a chance to take stock of your debts. It’s your opportunity to sit down and take a good look at your finances, so you know how much you can realistically commit to paying towards your debt every month, without stretching your finances too far and taking up every available penny.
When you take out a debt consolidation loan, you’ll know how quickly you can comfortably repay it – and you can arrange repayment terms that respect that. You’ll be taking on a debt you know you can afford to repay.
Basically, samla lån gives you the chance to slow down the rate at which you’ll repay your debt. By arranging a longer repayment term, you can significantly reduce the amount you’ll pay towards your debt every month.
Bear in mind, though, that repaying any debt more slowly will extend the amount of time that the debt accrues interest – depending on the interest rate this means that repaying debts over a longer period could increase the total you repay in the long term.
If you’re paying off high-interest debts with a lower-interest debt consolidation loan, your debt will grow at a slower rate. Even if it takes longer to pay off, it might still cost you less in interest.
In other words: depending on the interest rates on your original debts and on your new loan, you might be able to reduce your monthly costs and reduce the overall cost of repaying your debt.