Basic Debt Consolidation Advice

The world of debt consolidation advice can be a murky one.

I say this with good reason. There are, without doubt, honest and capable practitioners that are keen to help and do good. There are also, however, rogues who cause more harm than good.

I'm sorry to say that I have seen this in the past in the UK. People have seen an advert, called a 'free' telephone number and before you know it, they are in default on all their loans and theri finances are in terrible long term trouble.

Some debt consolidation advice actually seems to be to 'negotiate' with lenders on your behalf and 'lower' your payments. They then whip you straight into default! Gee - thanks!

Guess what? Interest is still being charged, you are just paying 95% less of the costs. The situation is getting worse not better. But, your monthly outgoings are much lower so everything feels better.

Where do you start?

If you want my honest advice, a pretty good place is a credit score. Any lender or adviser that you speak to is going to want to know about your credit score, so you might as well find out.

Happily, I have little debt experience outside of the UK so I have not needed to use a non-UK company and so am now unable to vouch for any. However, I have had some dealings (via clients) with a UK firm that seem to do a pretty decent job. They offer an online credit service system for UK residents. Presuming that you can / have found a company that can help with your credit scoring you now have useful information. If you look at your score and realise that you wouldn't lend money to yourself (!!) you know that you are going to have a hard job getting anyone else to.

But, if your score reveals that actually you score quite well and have a reasonable credit rating, it may be possible for you to look into debt consolidation and take out one loan at a better rate of interest to carefully reduce your monthly outgoings.

As with everything else on this site, this writing is actually suggesting that you tread slowly and carefully and assess your options fully. Do some of your own research! If it all goes wrong because you took poor debt consolidation advice, it will be you that ultimately suffers.

My advice?

Start slowly. You are in the right place, searching for information online. Keep looking for a day or two and try to find out the possible options you have to consolidate. Think carefully about the implications of each. If you don't know the implications - keep looking!! Do your own due diligence. Once you think you understand your options and what is to be gained, then take debt consolidation advice as an informed customer rather than a sheep being led blindly.