Make no mistake about it, these are financially difficult times to be forging your way in life. Extortionate education costs, sky-high rents, eye-popping property prices… the list goes on, and, needless to say, it’s easy to see how a cycle of debt can perpetuate itself over the course of our lives.
One thing it has arguably done is shed the stigma that comes with being in debt. It’s a reality that many are facing now, so there is certainly no shame in needing a helping hand. The problem is that this helping hand isn’t always easy to find, and in the complex maze of credit providers, it’s hard to nail down the optimal way of managing your debt. Inevitably, in pursuit of this ‘perfect credit provider’, many of us are left paying off a variety of loans at different rates, and, come the end of the month, it can cause an almighty headache getting your ducks in a row.
But it need not be this way. Rather than juggling a collection of separate debts, why not pile them all into one by applying for debt consolidation loans with a market-leading APR? The logic is fairly straightforward. Debt in itself isn’t a lot of fun, but having to worry about different repayments, of different amounts, with different repayment dates and APRs is an unnecessary extra stress. Taking out one loan to pay off all of these, leaving you with just a solitary loan repayment each month to concern yourself with, is the easy, and often cheaper, solution.
The impact of peer-to-peer lending on consumer credit
The key, of course, is not only to find a credit provider offering this type of loan, but also one offering an APR that betters the ones on your existing debts. Otherwise there wouldn’t be much point to the exercise!
In the face of the poor value on loans being offered by banks and other heavyweight financial institutions – not to mention the frustrating inefficiencies and obstacles that come with the application process – the popularity of peer-to-peer lending platforms is surging.
Such companies generally function entirely online, and this, coupled with the fact that they are able to match consumers looking to lend their money directly with those seeking a personal loan, means they are able to operate with minimal overheads and thus offer better rates to both parties as a result.
Personalised online loan quotes for borrowers are typically attainable in a couple of minutes, and the subsequent application process is similarly brief and simple. One particular peer-to-peer platform, Lending Works, has an easily understandable loan calculator function, demonstrating the APR you can expect depending on the loan terms and loan amount.
The same company offers unrivalled flexibility to its borrowers too; and not just with regards to the term and the amount. Indeed, should you find yourself in a position to repay your loan early, you can do so at no extra cost.
Furthermore, although the online platform is straightforward, they place an imperative on customer service, with a dedicated UK-based, customer care line with no annoying computerised screening functions. They also scooped the Highly Commended award in the 2015 Moneywise Customer Service Awards, demonstrating their commitment to a good customer experience.
Above all, they specialise in debt consolidation loans, and, with their competitive APRs, will likely be able to offer you a rate that beats the ones on your other debts. After all, debt is something that many of us need to confront head on. But simplifying it through debt consolidation, and thus easing the burden it places on our everyday stress levels, is something well within our control.