Are you someone who is struggling with debt? Do you think you won’t be able to pay back all your debts or won’t be able to manage the various debts you owe?

If so, you’ve come to the right place. I’ve prepared a comprehensive guide on how you can work on getting a “join debt consolidation loan” and can work towards repaying your debt. I’ve also added an FAQ section for added clarity.

Let’s get right into it.

What is Debt Consolidation?

Debt consolidation, to put it simply, is a procedure where you take out a large personal loan that is equal in value to the loans you owe. The aim is to get it at a lower interest rate than the debts that you currently owe.

In essence, debt consolidation allows you to combine all your debts into one and focus on repaying only one large debt instead of several smaller loans.

One of the primary reasons why people get a personal loan for debt consolidation is to make your debts easier to manage. 

If you get a large loan at a lower interest rate than what you owe on your existing debts, you’ll potentially have to pay a lower total amount than you otherwise would.

What is a Joint Loan for Debt Consolidation?

To put it simply, a joint loan for debt consolidation is where you work together with a spouse or another close family member to apply for a debt consolidation loan.

Since creditors consider your financial circumstances, credit score, income, and other factors when they’re deciding whether to give you personal loans, you may be refused if you don’t match their criteria for the agreement on your own.

A joint consolidation loan is one where you apply with a partner, a close friend, or some other family member to apply for a loan. Both of you combine your incomes, credit scores, and financial circumstances to improve your chances of getting a loan.

If you have a bad credit score and don’t think you’ll be able to get a consolidation loan with monthly repayments on your own, you can team up with a spouse or a relative who has a better credit history and borrowing record and apply for the loan together.

In terms of the specifics, whether it’s a loan to pay your credit card debt or something else, both of you will sign the loan agreement together.

joint loans for debt consolidation

Benefits of a Joint Debt Consolidation Loan – Credit Score and Consolidation Loans

Let’s do a quick run-through of how a joint consolidation loan can help you.

  • Joint consolidation loans are easy to manage

Under normal circumstances, if you’re registered in england, you’ll have to keep up with all your loans, where your money goes each month, and keep track of all the debts you owe.

In these conditions, it can be very easy to mismanage your debt. You may miss a couple of payments, you may forget to keep track of your payments, or you may even find that you have less money than you expected to contribute towards a particular loan.

Joint consolidation allows you and your partner to make a single payment each month without having to worry about where your money’s going.

  • Closer family ties and shared responsibility

A joint consolidation loan and the corresponding application process is one of the finest examples of shared responsibility, where both partners assume liability for the loan and work together with a common goal.

  • Stable repayment plan

When you get a loan from a company that is authorised and regulated by the financial conduct authority, you’ll be assigned a fixed payment schedule.

The best part about it will be that your charges will be fixed, you’ll be making a single payment each month, and you won’t have to worry about hidden costs or surprise charges hitting you every few months.

  • Helps you work on your credit score

If you’re looking to get a mortgage loan with monthly repayment, you and your partner can work on rebuilding your credit rating and getting the mortgage loan you want for yourself and your partner.

What Should you Know Before Taking a Joint Debt Consolidation Loan?

For one, you should know that not all debt consolidation companies are equally good. Some are far better than others in terms of the strings they attach to their personal loans. Make sure you’re going to a reputed company that won’t be a disadvantage to you.

Secondly, you should be able to make the repayments you owe every month. If your loan is so large that you can’t afford it, don’t go for it.

Lastly, do know that a consolidation loan may severely impact your credit rating. If you fail to make repayments, don’t manage it well, and act carelessly, it will come back to haunt you.

FAQs

How can a joint debt loan help me?

It can help you in several ways. It can help you manage your debts effectively. It can get you a loan at low rate. It can help you improve your credit score.

Am I eligible for a joint consolidation loan?

If you’re a resident of the UK, a legal citizen, and don’t have an active criminal record, you’re eligible for a joint loan.

Can I get a joint debt loan with a poor credit score?

You can, but it may not come without several financial restrictions and unfavourable circumstances.

The worse off your credit score is, the less likely you are to get a joint loan, and the more likely you are to get it at very high interest.

Is it possible to get an unsecured joint debt loan?

Yes.

While it is rather difficult to get an unsecured loan, it isn’t impossible. However, do know that these loans may come with higher interest rates and stricter conditions than secured loans.

Why should I combine my debt into a single loan?

Combining all your debt into a single loan can make your debt significantly easier to pay.

If you’re getting the combined loan at a lower interest rate that your existing loans, all the better.

Wrapping it Up

This guide intended to let you know of joint debt consolidation, what it is, when and why you should get it, and how it can help you.

If you need any more debt advice, make sure you reach out.

About the author

Scott Nelson

Scott Nelson is a financial services expert, with over 10 years’ experience in the industry, including 6 years in FCA regulated companies. Read more
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