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Published on:June 10, 2011Author:The Debt Advisor

Are debt consolidation loans as risk-free as they appear? In a world where it appears that nothing comes without a catch, and a loan is coupled with a blood-curdling interest rate, can you really trust that a risk-free loan can be sought?

Debt Consolidation loans have all the promise of a solution, one thing they don’t boast is that it’s a quick, painless and liberating solution.  That’s because loans never are.  But what you have to consider with a Debt Consolidation loan is, do you have the capacity to keep up with payments?

A Debt Consolidation loan can eliminate the headache of managing a number of payment dates and creditors.  The loan commits you to paying off debts for longer, but ensures that you minimize interest paid.  Oh and by paying off your debt, you’ll improve your credit rating.

However, you must be aware that everything has a small print. If you have previous bad credit or large debts, a secure loan may mean putting your house at risk by securing it against your debts.  When selecting which loan you would take, you need to calculate your monthly earnings and outgoings.  This can be done using a Debt Calculator.

This sounds risk-free doesn’t it?  It’s not that easy.  It’s not interest alone that has stockpiled loans to an unaffordable amount, it’s the individual.  The average household owes approximately £55,000, and a property is repossessed every 14 minutes in the UK.

Whilst loans can alleviate the stress of debt, it’s your lifestyle that could also decide if you return to debt.  You need to ensure you manage your assets and you’re living within your means.  The simplest way of working out if Debt Consolidation is the right avenue for you is to talk to an experienced debt advisor who can talk you through the various debt solutions that are available.  The Debt Advisor has appeared on the BBC , Panorama and a host of other programmes and publications, and are committed to providing quality debt advice. The Debt Advisor are members of the DRF, and are regulated by The Financial Conduct Authority no 60669. Get in touch today to discuss your options.