Consolidation Loan - How to Keep on top of Repayments

Taking out a consolidation loan, like any other kind of loan is a responsibility. You need to ensure you can afford regular repayments. A good mortgage company will advise you on the right consolidation loan for you, ensuring it is affordable and amenable to your current situation. Consolidation loans are a popular way of addressing debt problems, and offer many people a way forward in controlling their finances. It is however important you maintain regular payments, especially if your home has been used as security for the consolidation loan.

Consolidation loan repayment - Top tips

• Take stock of your finances

Simply make two lists - one that has the total of all your incoming money and the other all your outgoing money. From your expenditure list, priorities your outgoings - these will be things such as your mortgage, loan consolidation repayments, utility bills, food and other essentials. Then go through the amount you need for alcohol, entertainment and other non essentials. From here, see where you can make savings.

• Make savings, be financially astute

Maximising your incoming money is the best way to ensure you can afford your consolidation loan repayments.

You can make savings that could be put towards your consolidation loan repayments. Ask yourself, do you really need:

• That gym subscription? Walking is free!
• Magazine subscriptions, newspapers and books - you can pick up most magazines, newspapers and books at your local library for free
• To buy your food at expensive supermarkets? You can shop more economically if you shop around, a top tip is to use a shopping list and shop online - that way you reduce the temptation of impulse buying.
• That morning cup of latte? It all adds up
• Satellite TV subscriptions - there are plenty of free-view channels to keep you entertained

Build an emergency fund for your consolidation loan repayments

If you make cuts, you can use the money you would have spent to build up a savings account and emergency fund. You should have at least three months of your annual salary put aside for an emergency fund. Life can throw things your way that might impact on a month or two of your earnings - divorce, a wedding, a new child - and you should have a financial buffer zone. It may feel like you are making sacrifices, but being careful with your finances will give you peace of mind and allow you to keep on top of your consolidation loan repayments so you can finally beat debt. Once you've done that, you can start saving for that dream holiday!

Homebank's mortgage advisors are experienced in helping people finding the right mortgage or consolidation loan to consolidate their debt and are always available to provide debt consolidation advice or to give debt management tips. They could help you reduce your debt to affordable single monthly repayments giving you the chance to get out of debt quicker by reducing your monthly outgoings. Call Homebank now on freephone 0800 052 3604 and see how they can help you.