As many people have already seen the credit boom that has given many of us easy access to affordable finance over recent years is quickly diminishing, with a growing number of lenders restricting credit and hiking up rates in order to minimize on the damage that the credit crunch is causing in the financial markets. As the credit boom comes to an end, fewer and fewer people will be able to get access to affordable finance, and many will be left with no choice but to opt for more expensive finance – with some being unable to get finance at all.
It is important to think ahead when credit conditions are as tight as they are these days, particularly with industry experts predicting that the credit crunch will continue to take effect over the course of this year, further fueling tighter credit conditions. For those looking to take out affordable finance time is now of the essence. If you are thinking of consolidating high interest debts such as credit cards, store cards, and higher interest loans, then it is advisable to start looking around for a low rate consolidation loan as early as possible, otherwise you may find that you have to pay higher rates of interest, or that you no longer have access to this type of finance.
At present, although many lenders have already tightened their belts and restricted lending, there are still some affordable finance deals available for those wishing to consolidate their debts, ease their financial management, and reduce their monthly outgoings. With high petrol cost, rising food prices, and high mortgage repayments, it is important to try and cut costs as much as possible, and one if the ways in which you can do this is by consolidating all of your more expensive debts into one lower rate debt, which increases convenience and can increase monthly disposable income.
However, in order to fully benefit from a consolidation loan it is necessary to find a loan that offers a competitive rate, so that you are saving money on interest and on monthly repayments compared to the debts that you are paying at present. To maximize your chances of getting a competitive rate early action is advisable, as the longer you wait the less likely you are to find an affordable consolidation loan if lenders continue to tighten their lending rules.
The end of the credit boom has affected many people already, with more mortgage application rejections and a higher level of credit card applications reported for the end of last year. However, acting quickly to get your lower rate consolidation loan can make all the difference.