Debt. It can be an unsavory topic for some and cause feelings of stress or embarrassment. However, with costs going up, the reality is for some there is little choice but to add a bit of debt to their incomings and outcomings while they navigate everyday finances. Indeed, according to the latest Bank of England figures Credit card debt rose to £68.9billion in November 2023 – 8.6% higher than the year before.

 
And so, with Debt Awareness Week, from 18th to 24th of March, coming up – James Briggs Head of Intermediary Sales at property lender Together has shared a few helpful tips for those managing down their debt repayments this year – including the value of debt consolidation loans.

As, when it comes to debt consolidation loans, Together’s research among its broker partners, identified a demand for smaller loans from borrowers who may be struggling to pay off unsecured debt during the ongoing cost-of-living crisis.
 
Here, James Briggs, shares his tips to help those struggling with debt: 
 

  1. Identify what is right for you:

 
Before applying for a debt consolidation loan, it is essential to add up the balances of their debts to understand the figure needed from their lender. Identify whether a smaller loan, to pay down overspending on credit cards or if a larger loan is needed for home improvements this year is needed. For example, Together offers a reduced second charge loan at £20,000 to help manage costs. This loan may be more suitable for borrowers who are finding it harder to qualify for further advances as high street banks tighten their criteria.
 

  1. Research and security:

 
Once the figure needed has been confirmed, spending time researching the best loan for you, taking into account other monthly expenses and your lifestyle, is imperative to stop extra stress down the line and potentially other expenses having to be paid through credit cards. A lender which offers an auto repayment per month, with a clear product end date is advisable to give greater control to your overall expenditure. Our second charge loans are available, to help support you in moving away from more expensive lines of unsecured credit to a secured loan including a product end date and option to set up autopayments.
 

  1. Avoiding adding to the debt:

 
Once your debt is successfully consolidated, your payments should seem more manageable, and the stress once felt may begin to diminish. This is when many of us may be tempted to begin overspending on our credit cards again, however avoiding adding to your debt is essential, especially as this will eventually have to be paid either through your finances or choosing the debt consolidation route again. Keeping tabs on your spending habits is key and building up good credit is important so for those considering closing their credit card, you may hurt your finances more than help. Although debt consolidation is a great way to get support and effectively pay back debt, whilst you are paying off your new loan, monitor credit card usage and stay money savvy.
 



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