What is a financial freedom? Is it about not having any problem and everything is smooth to run? No, not at all. Financial freedom is all about not having any debt burden on your finances. It further gives you peace of mind.
If you think that no problem will exist while running the financial activities of your family, then you are wrong. Believe me, because it is not possible. At some point, you will face problems that may have different shapes, like unemployment, financial emergencies, or slow business growth.
To rectify these problems, you tend to use your credit cards more or apply for loans one by one to manage the expenses. It may be a temporary relief, but it is indeed like ‘a short-term gain for a long-term pain’.
What will be the solution to eradicate these debts? You will be surprised to know that you must only go towards loans to settle your financial obligations. Yes, do not feel surprised.
The UK financial marketplace has multiple loan options ranging from small-term to longer ones. I suggest you opt for the smaller term, as you will have a higher chance of getting a guaranteed instant loan in your favour.
Does it mean you can pick any loan to consolidate your debts? My answer is NO. Not every loan can solve your debt problems. You must be very specific in your research to pick specific borrowing options. It is what we will discuss further in this blog.
Why do you need to consolidate your debts?
You have one single problem in your life. It is pretty easy to manage. You will solve that problem and move on. If you have multiple issues to deal with, forgetting your finances, you will not be able to stabilise your mind, especially when you are the sole earner of your family.
The same applies to various debts. Medical bills, monthly rent, kids’ tuition fees, daily convenience costs, and monthly household budget are some things you cannot run away from.
As long as you earn well, you will handle such expenses and run your family smoothly. What if you lose your full-time income? Everything will be shattered, and such debts will not allow you to relax.
At this stage, you will realise the need to consolidate your debts. It is suitable for your financial health, too. Keeping multiple debts at a time will not permit you to fulfil your basic needs and meet your personal aspirations.
Therefore, you should make the right decision by picking the most suitable loans to consolidate your debts. Now, let us discuss those loan options.
Loan Options to consider to consolidate your debts
Below are some of the best options to consider while thinking about merging your debts and living truly to your financial freedom.
Debt Consolidation Loans
Why not start with a dedicated loan offer when it is about consolidating your multiple debts in one attempt? Yes, we are talking about debt consolidation loans. These are among the most preferred loan options and suit everyone’s finances.
Loans for debt consolidation are personal unsecured loans where you apply for a lump sum, which should be equivalent to the total value of your debts. It helps you to merge all the pending debts into a single loan. It means you will make one repayment with one specific interest rate.
Such loan features indicate that you can better manage your finances by paying one instalment and focusing on the rest of the household budget. Since these are dedicated funding options, the chances of fetching guaranteed instant loans for consolidating debts are brighter.
PROS
- Instant loan approval
- No collateral is needed
- Available on any credit score
CONS
- It is like having another debt
- Interest rate can be higher
- Ideal for only smaller debts
Personal Loans
Now, let us move from the specific ones to the most standard loan option, i.e. personal loan. There is no need to define these loans because everyone knows these funding sources. Almost every person has availed of a personal loan for multiple purposes.
These loans are vital sources for merging multiple debts because you get the funds faster than other loan options. You can get the required funds as a loan and start merging all pending financial payments. Your monthly loan instalments will start the month after you get a loan.
PROS
- Easy to qualify loans
- Multiple lending sources available
- No barrier to credit scores
CONS
- Higher interest rates
- Fixed monthly instalments
- Chances of getting trapped in the wrong deals
Bad Credit Loans
In the above two loan options for debt consolidation, we mentioned no restrictions in terms of credit scores. Will that mean your credit score does not matter when consolidating? Please do not think it is so easy.
Your credit score matters a lot when applying for any loan. Many financial experts suggest individuals know their credit scores by keeping their credit reports. It helps them in choosing a suitable loan option.
Remember, not every lender provides loans to people with bad credit. Going for a dedicated deal would be better to confirm your chances of guaranteed loan acceptance particularly from a responsible direct lender in the UK.
PROS
- Higher loan approval chances
- No guarantor or collateral needed
- Soft credit check
CONS
- Loans on higher interest rates
- Fear of loan sharks
- Only a small amount to borrow
Conclusion
If problems are there, then their solutions also exist. For example, you may worry a lot when there is a considerable presence of debts in your financial life. Things get worse when they halt your progress. By applying for suitable loan options, you can reduce their consequences.
Whether a debt consolidation loan, a poor credit loan or a standard personal loan, these loans have the speciality to merge all your debts and give you much-needed financial freedom.
Still, you must be cautious while applying for a new debt to eliminate older ones.
Hi everyone, I am Lukas Thomas. I am a professional writer and author with having specialisation in the UK financial sector. I have more than 13 years of experience as the financial writer and hope it will continue longer. I have done my post-graduation in Masters of Business Administration (MBA) in Finance. Currently, I am performing my responsibility as a Senior Loan Expert in Fundingpeer, which is the fastest-growing online direct lending company. My job is to prepare borrower-friendly loan deals as per the company’s guidelines. I also write research-based blogs for the company’s official website. You can read them and gain knowledge on any loan product.
