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I would like to take a big loan to clear everything I owe so that I would be able to pay the organisation in installments

edwinakoffie
by edwinakoffie 23 February 2013  |  Comments 4 comments  |  Love Love  0 loves

I would like to take a big loan to clear everything I owe so that I would be able to pay the organisation in installments.

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Comments (4)

  • SoftwareBear
    Love rating 216
    SoftwareBear posted

    You mean a consolidation loan, you pay off everything else you then just have one loan to pay, these usually are by monthly/weekly instalment.

    They can work for some people, but for others the reduced monthly payments / extra borrowing brings more temptation to spend again.

    Remember they don't come for free

    Posted on 23 February 2013 | Love Love  0 loves Report
  • MikeGG1
    Love rating 909
    MikeGG1 posted

    As SoftwareBear posted, consolidation loans can work for some people. However, they aren't cheap so only replace those loans which are more more expensive and don't have redemption penalties.

    The danger is that, having paid off Credit Card debt, many people let it creep up again, which defeats the whole idea.

    Only do it if you can be sure of paying off any new CC debt in full each month as well as the instalments on the new loan.

    Direct Debits can help to make sure that you don't miss or be late with any payments. You can set up a DD for the full amount.

    Mike

    Posted on 23 February 2013 | Love Love  0 loves Report
  • edwardmk2879
    Love rating 65
    edwardmk2879 posted

    I agree with the above comments.

    If you have multiple debts at high interest rates, then a consolidation loan is a good idea, but do your research and make sure you understand what you're agreeing to in the small print. Many consolidation loans are secured on your house or other major asset, which you will lose if you become unable to pay the monthly payment through job loss or sickness. Consider income protection insurance but ask lots of questions.

    If you do decide to consolidate, you must cut up all of your credit cards. Any spare income you achieve should be put to savings to give you a three to six month buffer for your expenses. Apply for a genuine credit card, like the Utility Warehouse pre-paid card, which you have to load up every month by direct debit from the credit in your bank account.

    Good luck.

    Posted on 03 March 2013 | Love Love  0 loves Report
  • lordfincarpin
    Love rating 0
    lordfincarpin posted

    Hi edwinakoffie

    If you would like to take a big loan to clear everything then you can take help by long term loans

    These loans are somewhat can endow you cash with same day approval where you have more than year of repayment time. The repayment duration could be from 3 to 18 months where you have to make payments in easy monthly payments. If you’re eagerly looking for long term loans to deal with your fiscal issues then visit at longtermloansfirst(dot)co(dot)uk.

    Posted on 25 July 2013 | Love Love  0 loves Report

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