Debt Consolidation

Debt consolidation usually means you taking out further credit to pay off existing debts and reduce outgoings.

This is typically borrowed from a bank or loan provider and can be a useful way of putting your current debts into one monthly, manageable payment.

There are several different consolidation providers to choose from and if you feel this is a route you would like to take, we suggest taking some time to understand any interest, charges or fee’s that will occur as a result.

Benefits

• You will be making one monthly payment to one loan rather than many payments to different creditors.
• Your monthly payments may be lower, or at least should not be any higher.

Considerations

• You will need to obtain a loan enough large enough to clear all of your debt.
• A lender may require some form of security such as a charge on a property or they may want somebody to act as a guarantor.
• If you were able to obtain a loan large enough, with an acceptable rate of interest then you will need to make sure that you can afford the monthly repayments and that the duration is not too long.
• The costs of a consolidation loan will vary depending on the interest rate, and the provider of the loan.