Getting a better grasp of managing your finances might be difficult if you have multiple debts to your name. It would even be harder if you have high-interest rates applied to your debts, but you are not earning enough to cover all of these along with your expenses. The best way to be financially stable is to actually bring all the debt together. Sounds crazy, right? But a debt consolidation loan might just actually be the most logical thing to consider if you have debts and interest rates piling up on you. Not only will it make your life easier, but it would also give you better financial capacity and capability. Even if you have bad credit due to payday loans, outstanding credit card bills, unpaid mortgage payments, or even car financing loans, you could still be accepted for such a loan to save you from the trouble of multiple debts.

Cover all debts

With debt consolidation loans, it would mean that you will just have one outstanding to cover all of your existing debts. For example, if you have an outstanding balance of £456 on your credit card, a total payday loan amount of £2,357 left, and £1,864 from car financing, you could get a debt consolidation loan amounting to £5,000 so you could pay off everything. With the £5,000 loan, you would get a chance to choose whether to pay for it within 24, 30, 36, 42, 48, 54, or even up to 60 months. The best thing about it is that you do not even have to have a good credit standing; all you have to do is to get a guarantor who would get the loan with you.

Guarantor Loan

With banks, they check your personal background and credit scores to determine whether or not you would be approved for or denied for a loan. With TFS loans, you can apply for a loan, and they will determine the fate of your application through trust. If you have a guarantor you could get to sign off your loan application with who has a good credit rating; you would have a high likelihood of getting approved for a loan. If your guarantor is just a tenant, you would only be able to get a loan amounting to a maximum of £5,000, and you would be given a higher representative APR. Meaning, you would have a higher total repayable value, and not to mention even a higher monthly repayment amount. For a loan of £5,000 to be paid within a span of 24 months, if your guarantor is a tenant, you would have to pay a representative APR of 69.9% with a total repayable amounting to £8,292.96. In this scenario, you would have to pay a monthly repayment of £345.54. If, however, you would be able to get a guarantor that is a homeowner, for the same amount of £5,000 payable in 24 months, you would be getting a representative APR only amounting to 39.9% to give you a total payable of just £6,964.08. You would also be paying a much lower monthly repayment of just £290.17.

Unsecured Loan

With other financial institutions like banks, you would need a land title or a property to be used as collateral against the loan. When you get a loan with TFS loans, you would not need to have any form of collateral to be approved for a loan. A guarantor who will apply with you during the application process would already be sufficient to determine whether or not you would be approved or declined a loan. The main responsibility of your guarantor would only have to be that he or she would sign off an agreement stating that should you fail to make your monthly repayment on time and in full, your guarantor would be the one to make the payment in your behalf. And it would just be an agreement between you and your guarantor on the arrangements of how you would repay him or her back. The great thing about this kind of set-up is that you would also be considered to make your monthly repayments in full and on time. It would also give you the chance to increase and improve your current credit rating. Not only will you be able to fully pay off all of your existing debts and avoid paying tons and tons of unnecessary expenses on interest, but you would also end up having a better credit rating after the term of your loan.