Vincent Bond

I've only been with Vincent Bond a short time, but in that time I can only praise the fantastic work of Karrie. She is sympathetic without being condescending and is extremely punctual in getting back to me. She has always kept me informed of my case by either telephone, email or text, which is really handy. Every payment date I get an email to state that's funds have been received. I have no hesitation in recommending this company based on Karries dedication and hardwork.

What is Loan Consolidation?

A new loan that is created by combining the repayment of two or more loans to reduce the amount of monthly payments and extend the loan repayment term.

This is a further loan to pay of all or some existing debts.
The monthly repayments are lower.
The overall term is usually longer, eg 5 – 10 years.
These loans can be unsecured or secured against your assets, eg your home.

Is it right for me?

You should be very careful before entering into a consolidation loan whether secured or unsecured. At first glance it looks appealing as the monthly payments are lower and you are dealing with just one creditor. However you should bear in mind the following:

Your debt is immediately bigger once you consolidate.
What you owe is not the settlement figure but the total of all the outstanding payments.
This is only a solution if all credit cards are destroyed and this is the only form of credit.
Some people do this several times and it is the reason that there debt increases so rapidly.
Often if you do this and have only one or two creditors, but then cannot afford to pay the monthly amounts, the IVA is much harder if not impossible to get accepted.

However, there are circumstances where this is the right choice - Talk to an adviser at Vincent Bond to discuss your situation and they will help you decide the best option for your situation.

Fees
Note
Caution

There are no set up fees as such, but the key to understanding the cost is simply to do the maths.
If you are borrowing £15000 and are told you will pay £200 a month, don’t forget to check how long the loan is for.
It may sound reasonable if you only consider the monthly amount. However when you realise it is a 10 year loan (120 months) you would probably think very differently!

What to do
Simply multiply the monthly payment by the total number of months the loan is for. Then deduct the amount you borrowed – that is the cost of the loan.

In the above example:
£200 x 120 months = £24,000.
Subtract the initial loan of £15000 = £9000.
The loan has cost an extra £9000.

If you struggled to pay this new loan in the first few months, the amount you owe in an IVA or debt plan would always be calculated as the total outstanding payments, not the settlement figure (‘pay today’ figure). This is how many people get further into debt – they have often not spent anything like total debt they end up with.

Often a debt consolidation loan is secured against assets like your home. If you use a consolidation loan and then continue to use your credit cards you may well find that you get into a worse situation. We only recommend a consolidation loan if we feel it is affordable to you and on the basis that you will destroy your credit cards understanding that you will need to change your spending habits.

It is important that you are aware of the following when taking on any debt solution with Vincent Bond & Co: All possible solutions should be considered to ensure you make an informed choice. Fees will be charged if a solution is taken. Stopping payments to your creditors may place you into further arrears. It is likely that your ability to get credit will be affected. In compliance with the Consumer Credit Act you have a 14 day cooling off period in which to cancel your plan. Calls to our free phone number may be charged from mobiles and other networks.