Juggling multiple credit card and loan bills each month can be stressful.
Step One can help you consolidate your credit into a single loan and you will be surprised at how low the rates can be in comparison.
Call us now on 01483 661 100 or click below for more information.
Benefits of a Step One loan
- Simplified payments: Consolidating multiple debts into a single loan allows you to streamline your payments. Instead of managing multiple due dates and interest rates, you make one monthly payment to a single lender.
- Lower interest rates: If you can secure a debt consolidation loan with a lower interest rate than your existing debts, you may save money over time. This can help reduce the overall interest paid and shorten the repayment period.
- Improved cash flow: By consolidating debts and potentially lowering interest rates, your monthly payments could become more manageable. This may free up cash flow, allowing you to better meet other financial obligations or save for future goals.
- Potential credit score improvement: Timely payments on a debt consolidation loan can positively impact your credit history and credit score. Consistently managing one loan may be easier than handling numerous debts, reducing the risk of missed payments or late fees.
- Reduced stress: With only one payment and a clear repayment plan, debt consolidation can help relieve the stress and mental burden of managing multiple debts and creditors.
Points of Consideration
- Total cost of borrowing: Evaluate the total cost of the consolidation loan, including any fees, origination costs, or prepayment penalties. Ensure that the savings from reduced interest rates outweigh these costs.
- Loan terms: Understand the term length, monthly payments, and interest rate of the consolidation loan. Longer loan terms may result in lower monthly payments but potentially higher overall interest costs.
- Borrowing limits: Assess if the borrowing limit of the consolidation loan is sufficient to cover all your existing debts. You want to consolidate all debts to avoid having multiple loans or debts remaining.
- Overall financial stability: Consider your overall financial situation. Evaluate whether consolidating debts will genuinely improve your ability to manage your debt and avoid falling into further financial hardship.
- Future financial goals: Assess how consolidating your debts aligns with your long-term financial goals. While debt consolidation can provide relief, ensure that it doesn’t impede your ability to save or invest for other priorities.
We recommend that potential borrowers consider all of their financing options to obtain the best solution for their needs. If you are thinking of consolidating existing borrowing you should be aware that you may be paying a higher rate of interest or if you are extending the term of the debt you may be increasing the total amount you need to repay even if the rate of interest is lower.