Instead of making multiple creditor payments to cover your loan, what debt consolidation: no loans allows you to do is lower the risk of making missed or late repayments as you only have one debt to make a payment to. This could save you money in the long run, as bank charges and penalties can soon add up!
No loans debt consolidation is also know as a debt management plan. A debt management plan is a debt solution which allows you to make reduced payments to your unsecured creditors. Some creditors also freeze additional interest and charges on your debt. Although consolidating debt with no loan does mean that you will be paying back your debt over a longer period, you will benefit from making your debt more affordable to you in the short term.
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