Is a Consolidation loan right for you?
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What is a Debt Consolidation Loan?
A Debt Consolidation Loan can reduce your monthly payments towards debt and allow you to pay back your debt at a more affordable rate. A consolidation loan could be most useful to home owners in Scotland in particular, who wish to consolidate debt without entering a debt solution which may involve their assets.
Since the financial crash of 2008 it can be difficult for a lot of people to get a consolidation loan, especially since most people seeking one might already have a perceived negative credit rating.
Debt Advisory Scotland can provide help on consolidation loans and also offer alternatives which would also not put your home or assets at risk, such as the Debt Arrangement Scheme.
The Debt Arrangement Scheme
As an alternative to a consolidation loan, the Scottish government have introduced a scheme whereby the debtor can pay back their debt at an affordable rate and be protected by legislation. The Debt Arrangement Scheme will will also freeze all interest and charges so that what you owe when you enter the scheme will be all that you pay back and your creditors can no longer add fees and charges. The DAS wont include any valuable assets you own and you will only have to contribute one monthly payment.
To find out which solution may be best for you, you can use our calculator