Loan Consolidation

Alternatives to Debt Management Plans

An alternative to a Debt Management Plan is a consolidation loan because it allows you to combine your debts into one manageable monthly payment. However, securing a loan will depend on your credit rating.

How does a debt consolidation loan help?

If you take out one single loan to repay your debts, it means you will be dealing with one creditor and one payment rather than several at any one time. You could also reduce the total amount of interest repaid. By focusing on one bill, you will ease the stress of managing your unsecured debts.

If you have a poor credit rating but are interested in a loan, we recommend speaking to Evolution Money on 0800 015 8288 as they may be able to help you.

Which is better: loan consolidation or debt management?

Deciding which is better – loan consolidation or debt management – is entirely dependent on your personal situation and the amount of debt you owe.

A loan may not be a practical solution if your debts are quite large. You will also have to successfully complete a credit check to qualify.

A Debt Management Plan enables you to repay debts at a rate you can afford and could stop you from getting deeper into debt. It also offers more flexibility than a loan because you can increase repayments as your circumstances change – helping you to repay and clear debts in a shorter amount of time.

What’s more, of 84% of debts managed we freeze interest and charges, whereas you will have to pay interest and APR rates on a loan – so you’ll pay back more than you borrow*.

A Debt Management Plan isn’t a loan; this means that you don’t have to complete a credit check to qualify. We will also reduce the stress of dealing with demanding creditors as we will handle all communication and distribute payments to them every month.

Learn more about how a Debt Management Plan could help you clear your debts, contact Baines & Ernst today 0800 096 1331.

* By choosing to repay your debts at a reduced rate, you could increase the amount owed and the period in which you repay your debts.