Consolidate Debt

Consolidating debt is taking out a new loan to pay off any existing debt. For low level debt, or when the repayments are affordable without putting a burden on your finances, a debt consolidation loan can be a simple and effective way to regain control. Be careful, however, that this is the best option for you, if you are struggling with your commitments at the moment, then you may find that you can’t cope with the loan. Alwasy seek professional advice from a debt counsellor before consolidating your debts.

What to do before getting a loan to consolidate your debt

Before deciding on a debt consolidation loan,

Before you decide on a consolidation loan, find out what’s on offer and what alternatives you’ve got. These could include:

• Speaking to your lenders to make arrangements
• Rearranging your current credit to the most effective arrangement
• Borrow from relatives

If you do decide to take out a loan to consolidate your debts, we may be able to help. Call us on 0800 043 2332 for more information.

Reasons to consider a consolidation loan

Debt consolidation loans can help you take control of your financial situation, you can;

• pay a lower interest rate on your existing debts
• pay off priority debts such as mortgage or rent arrears
• pay less each month as a combined payment may be less than making lots of minimum payments
• know when you will have the debts paid off
• avoid getting into arrears with existing credit
• deal only with one lender

Possible disadvantages of consolidation loans

Debt consolidation loans may not necessarily be the right solution for you. Things to consider are;

• your payment period may be increased
• you may pay more overall
• there will usually be charges for the set up and administration of the loan

If you are unsure whether a consolidation loan is right for you, call now on 0800 043 2332 for some advice.

Important Information About Our Service & Fees

Whilst we strive in all cases to negotiate the best deal with your creditors, we cannot guarantee a reduction in interest or charges. Also as one of the largest providers of debt management solutions in the UK, we are able to provide initial advice over the phone without charge, however, if a debt solution is taken out, please be aware that fees will be charged. We aim to keep these fees as low as possible and believe that we are very competitively priced. View more detailed information on our fees including examples for each product here.

Further Additional Information

• What if I decide that I don't want to go ahead?
• Will my credit rating be affected?

The insolvency service has produced a guide for people who are struggling with debt, which outlines each of the available solutions.

If an IVA is not maintained it could lead to bankruptcy.