Debt Consolidation

How much is your debt? Depending on the size of your debt, a Consolidated Loan could be the solution you are looking for.

Consolidating loans work by merging your debt. By using your loan to pay off individual creditors, you have one lower, monthly payment to make.

It's an option for smaller debts, so if you owe £15,000 or more, investigate if an IVA would be better.

The advantages of consolidation loans

In addition to only having one creditor to pay off, a consolidated loan should have lower interest rates than your individual debts. Your monthly payments should also be smaller.

What's the catch?

Are you a homeowner? If so you may be asked to secure your loan against your home. If you fail to make payments on your loan you will then risk losing your house.

If you don't have anything to secure a loan against, then you would have to get an unsecured loan. The disadvantage with an unsecured loan is that the interest rates are usually higher, making it harder for you to pay off your debt.

The financial institution you approach for a loan will assess your credit risk and tell you what is available. Make sure you know all the fees, charges and interest rates before you agree to anything, and seek independent advice from a professional first.

Debt Help Today

What is Debt Management? - Understand it here.

What is an IVA? - A debt solution that could help you.

What is Bankruptcy? - Read the implications today.

More Debt Questions? - Find the answers in Debt FAQs