When the chips are down economically, all tragedies seem to strike at the same time. Suddenly there is a flurry of bills lying around the house, there is a shortage of cash to fulfill the basic requirements of running the household and one suddenly starts to dread the first week of the month - when all the payments are due. Just when you thought you had paid all of them, there is another lender who calls up to tell you that you had skipped him this time.
The problem with this state of affairs is not just the lack of money, the problem is the loss of peace of mind, the loss of sleep at nights and the numerous lenders you have to deal with. If you are in such a state, debt consolidation loans would seem just the godsend for you.
Debt consolidation loans are available to everyone who is a citizen of UK. Also, these loans can be used for many purposes other than debts - these can be used for improving your home, buying an automobile, growing the business and other things. These loans, like all other loans are available at a lesser rate if there is a collateral associates so that it becomes a secured loans but this is not normally the case with tenants in the UK. But then with the competition in the loan industry today, the rates can be yet bargained competitively and it is possible to obtain these at a lower rate.
Debt consolidation helps you plan out your finances better. Most people would be surprised to hear this but that would only mean that they have never sat down to compare the rate of interest they have to pay on the credit card bill. Or how easy is it to slip on the bill and pay nearly double the rate for the next few days. Do we all not keep delaying payments till as long as we can?
This is where debt consolidation makes your portfolio look much healthier - with a single loan neatly packaging all your debts and dues and requiring you to make just a single payment each month. Let us try and list out the gains from consolidating our loans in a more exhaustive manner:
1. Debt consolidation loans reduce the overall payment and the average interest that you require to pay each month. If you consider the various bills and card payments and loans, debt consolidation cumulatively offer a better solution. That is why someone would take such a loan.
2. When we have individual bills, we delay payments and the amount keeps on accumulating. Moreover even the interest keeps on rising. With a debt consolidation loan, a single paycheck is due every month and if planned well, the whole loan gets paid off in one go and at cheaper overall rates.
3. It takes off the tension one is going through and lets one concentrate on the real reason why one reached such a financial situation. Debt consolidation loans help individuals concentrate on other things like their jobs or business and get out of an unfortunate situation faster.
4. These loans for tenants take away the multiple points of exit of money and the multiple lenders to deal with. This further reduces the risk of getting into problems and eases the life of the borrower.
Tenants, since they would more often than not get such a loan without a collateral, should shop for the best rates before settling on one of them. Nowadays they can get such unsecured loans at rates as low as 11 - 13% depending upon their credit history and the risk of their situation. It is also important that you understand that you should never use the credit card or create other exits for money once you have opted for a debt consolidation. It would bring you into a state worse than you were.
We thus see that debt consolidation loans for tenants is a very important tool to keep a tab of your finances and be able to clear all debts in a planned manner. It lets you wrap all debts and bills into a single loan and help you clear all loans in the best manner. These loans can be used for mortgage, credit cards, expansion and construction other than loans. It is possible to get loans nowadays at a lower interest than before so one should deftly plan out before deciding on one. This is by far the best way to clean up debts if they are many in number.