Yes, it may sound funny to take another loan to repay the previous ones. And confusing too as to how would this even work? Consider a situation where you have already used all your income sources on the first day of the month- your salary, credit card and savings. Now how do you pay for all the bills that come through the door?
Things do not get any easier for you when you decide not to repay what you owe. For each month that you delay making the repayments, you are charged with penalties and interest keeps accumulating. Thinking of defaulting? Imagine what a disaster it would be for your credit score.
Unclear dues are a necessary liability that needs to be taken care of, while there is still time. A stitch in time always saves nine later. Whereas you were to pay £20 as the interest for a certain bill, it will become double the next month- not to forget the interest for the next month added too.
Exactly! You do not need to extend the period of your borrowings. Things can easily get out of hand. It is completely deemed alright to find yourself in the middle of a large debt that amounts to much more than you can afford.
Even when you have exhausted all your income, you are left with the option of taking small installment loans. They are available with direct lenders with absolute ease and comfort. You know that your regular income will help you pay the instalments. That is all a lender needs to know to approve your loan application.
You would not wish to pay additional charges when you can avoid it. Taking a loan amounting to your piled up debt is a clever way to shoot all birds with just one stone. Once it is done, all you are liable for is just one installment each month.
You have an interest to pay for every arrear you owe. For instance, if you have a small loan, student loan and a credit card in your name, you pay interest for each one of them and that also for every month they are not repaid in full. But when your instalment loan takes care of the entire amount, you only have to pay just one interest charge.
In addition to the reduction in the number, the value also comes down. Let us say that you were paying 5%, 10% and 15% interest rates for your various loans. But now, there is a sole 12% interest rate to be followed. This brings down your expenditure in a considerable way.
Do you have an idea regarding what makes your credit score go up or down? It is solely your behaviour in repayments of your borrowings. Whenever you miss a deadline, the number goes down. Ten scheduled payments after that make it go up again.
The importance of having a good credit rating cannot be questioned because it saves you hundreds of pounds to have one. Instead of waiting for your next salary to clear your bills, it is better to do something today. If you do not have a fine score, you have the option of installment loans for bad credit as well. The direct lenders have already taken every situation into account, so that you do not have to worry.
This has dual effects. Your rating does not go bad, and paying back the loan helps in increasing it too.
A lender would obviously contact you when you do not pay the money back. Banks would keep sending reminders to clear the credit card bill. Every call and message would be a source of stress and frustration for you. It can even get extended to the level of receiving a legal notice.
The life of living under debt is not a pleasant one. You constantly think about how extravagant you had been and how things could have been much different had you thought about the future for once. But you have a way out of the blame game now. Installment loans in the UK can be your champions if you let them be. They have been designed by the online lenders to relieve people of their financial stress.
You no longer need to worry about lack of funds. It is not going to be a miserable situation anymore to be burdened under big invoices. Everyone has a difficult phase in their lives and it is alright to feel the pressure.
But now you know that there is a solution to it. And it comes accompanied with varying advantages of its own. Stop being concerned about the dues anymore. Consolidate and repay them all at once. And this is the best reason to rename installment loans as debt consolidation loans in this situation.
