Consolidating bad credit
People also turn to debt consolidation loans as a way to address a debt problem.This too can be an effective debt strategy, although there is one major risk associated with this that needs to be mentioned.Simply put, it brings a number of debts into one easy payment.
In other words, when it comes to addressing a debt problem, perhaps more debt is not the solution.
The new laws mean that potential credit providers now have access to more comprehensive information about your level of indebtedness and more specifically, the way you manage your debt.
Until now, credit providers could only see your personal details, credit infringement information and the amount of times you may have applied for credit (assuming that the credit provider made an enquiry).
One of the biggest mistakes that people make is assuming a consolidation loan will be cheaper.
This is not always the case and interest rates will vary depending on your credit reputation and the lenders assessment of your application.