Debt & Loan Help
Serious debt problems are an everyday reality for some or many people in the UK.
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DEBT CONSOLIDATION LOAN (DCL)
Too much borrowing at too high an interest rate has crippled some people financially as they are now unable to afford to pay the money back. Thankfully it is possible to improve this situation through taking out a debt consolidation loan. In this small article we discuss this possible solution.
DEBT CONSOLIDATION LOAN (DCL) A DCL equates to a loan that is used for paying off all other previous debts. If you are granted a DCL it means that the new borrower accepts that you were unable to pay off the previous debts because the rate of interest on them was too expensive. The DCL should possess a lower interest rate than those past loans. And when you have used the DCL to successfully pay off everything that you owe from the past… you continue to make payments at the lower rate of interest in order to pay off the DCL.
One negative side to DCL’s is that the repayments can span decades due to the fact that a very low interest rate is applied. Indeed, while repayments can be over a 5 year period for less extreme indebtedness… it can be up to 30 years payback for those in the most severe financially indebtedness.
The lender of DCL’S will want to ensure that the borrower is capable of making payments. Therefore it is likely that the applicant will be asked to supply documents related to incomings, outgoings and employment status.
The applicant is advised to check with different DCL lenders so as to receive the lowest interest rate available. Spend plenty of time researching and then apply online as this is the fastest way to process applications.
Bad credit rating is no obstacle to receiving a DCL. Indeed, it is understood that those seeking such a loan will have a bad credit history. However it is imperative that you convince the lender that you can make the repayments.
CONCLUSION It is often a smart idea to apply for a DCL. However it is absolutely essential that the lender does his or her research and not only takes out a loan with a lower interest rate than all previous loans… but also an interest rate that is lower than other DCL opportunities.