Members of the Association of Finance Brokers
Debt Consolidation Loan
-
A Debt Consolidation Loan is a new loan that consolidates (puts into one) all your other loans or outstanding credit agreements, such as personal loans, credit cards and store cards, overdrafts and catalogues etc.
Debt consolidation loans often help people to bring together all their unsecured personal debts into one new loan and have ONE, new monthly repayment instead of several. The interest rates for a debt consolidation loan can often seem very attractive when compared to the cost of your current credit.
Our trained advisors will email or call you back at a time that suits you
You should be careful when consolidating other debts into one new debt consolidation loan, this is because if you fail to pay the loan, a debt management plan is not a possible next option as you only have one lender. If you think you may fail with the repayments on a new debt consolidation loan then you should consider debt management in the first instance.
-
A debt management plan is a form of debt consolidation but without a loan! No credit checks either!
Debt consolidation loans do not always get offered on an unsecured basis, lenders will usually be looking to secure a debt consolidation loan against your home if you own one! This can be risky if you fail to keep up with repayments on the new debt consolidation loan as your home could be repossessed by your lender (taken back from your ownership).
-
Not all debt consolidation loans are secured against property and most are available up to £25,000.