Loan consolidation: how to consider consolidation options - Loansmart Finance

There are many ways in which you can do a loan consolidation.


Why should I consolidate my loans?

The primary reason for doing a loan consolidation is to reduce your monthly outgoings into one manageable payment. Sometimes multiple payments and the considerable amount of interest being charged makes it a viable option. You need to consider all factors before making such an important decision.

Loan consolidation can mean just credit card consolidation into one manageable payment or can also include other loans. It is important that you consider the total cost of loan consolidation and compare options.

You need to be mindful that credit card consolidation will mean entering into a fixed term loan. This will mean that you have a defined period of when the debt will be repaid.


How can I get a consolidation loan?

There are several different ways of obtaining a loan consolidation loan. You maybe able to secure via an unsecured loan or if you are a homeowner you can consider a secured loan on your home. Either route will normally be determined by the credit policy of the lender.

A secured loan will sometimes result in a cheaper rate of interest but will be dependant on your credit profile and ability to repay.

Many customers also consider a loan consolidation together with raising money for home improvements. This can, subject to calculating and comparing the full cost, mean you can do the home improvements which otherwise you may not be able to afford.


Is it worth it for me?

One way of ensuring that it is a viable option is to use a loan calculator which are available on some websites. This will simply provide you with a guide of what the payments will be so you can do high level analysis. In order to get an accurate idea you would need to apply and go through the credit process. One such option would be to apply via a broker that has access to a panel of lenders.


Loansmart can help

We’re a broker, which means we have access to a lender panel. Why not contact us to see what we can do for you.