The Great British Wardrobe Report showed that the average Brit shells out £1042 per year on clothing. Die-hard fashion fans may spend a lot more, especially if their tastes run to high fashion. Clothes that fit into the status symbol category are typically pricey. They are exclusive and this is what makes them so much fun to wear. If you love indulging in fashion, but often pay for your purchases with credit cards or other forms of credit, you should know that debt consolidation will be the key to managing your finances effectively. Today, it’s time to discuss the benefits of debt consolidation and share other credit management tips that are practical and so easy to implement.
Why Is Debt Consolidation A Good Strategy?
Your love of fashion should never harm your financial future. If you’re carrying debt from two or more sources, you should strongly consider consolidating your debt. When you consolidate debt, you’ll need to make one payment per month, instead of two or more, and you won’t have to deal with extra interest charges and late fees. You’ll also avoid tiresome collection calls and letters. One of the biggest advantages of debt consolidation UK is accessing a lower rate of interest on debt. When people consolidate, they’re usually able to access debt consolidation loans with lower interest rates.
Are There Any Debt Consolidation Drawbacks?
Debt consolidation loans are sensible options, but some people won’t qualify for these types of loans. The key drawback of debt consolidation loans is that there is the risk of being turned down. Whether your application for one of these loans is accepted or rejected will depend on the amount that you want to borrow, as well as your personal credit history. Another possible “con” to be aware of is that these loans aren’t appropriate for every person. Someone who has a sporadic income may find the burden of making timely payments to be too heavy. If you feel that you’re ready to commit to a set loan repayment schedule, and you are approved for one of these loans, you may want to move forward. This sort of loan will help you to get your finances under control.
What Else Can You Do?
Many fashion fans rely on additional funding to pay for new clothes, accessories and footwear. They plunk down the plastic when they want something new, which boosts their self-esteem and makes them feel stylish. If you use credit cards to pay for clothes, you should look for a credit card with the lowest possible rate of interest. Don’t stick with a credit card with a very high interest rate. Negotiate with a current credit card company or arrange to have your existing credit card balance moved to a lower-interest credit card. As of winter of 2018, the average level of credit debt per UK resident was 7,863 pounds. Lower interest rates for credit cards will help you to bring your personal credit debt load down.
Find Smart Ways To Manage Your Finances
If you’re into fashion, you’re always going to want the coolest new pair of trainers, or a sharp suit for work, or cool logo gear for casual wear. Your love of fashion isn’t going to disappear any time soon. To ensure that your love of fashion doesn’t get in the way of your financial future, consider a debt consolidation loan that offers impressive convenience, as well as a lower interest rate. You should also try to find a credit card with a lower rate of interest.