A fresh look at your finances
Debt Consolidation is basically the process of taking out one large loan and using it to pay off all your existing debts. You then make one monthly payment to your debt consolidation loan and only have to deal with the one creditor. It does have the benefit that you may well be able to get a lower rate of interest for the debt consolidation loan than the rates on some of your existing debts. You would need to check whether there are any penlaties for paying off your other debts early though.

To help get a lower rate, if you are a home-owner and have plenty of equity in your home, you may be able to get a secured debt consolidation loan. However, you should be aware that doing this can put your home at risk if you do not keep up to date with payments to the secured debt consolidation loan. You must therefore be sure that you can maintain the payments to a secured debt consolidation loan.

Debt Consolidation can be of use to you if you are struggling to make multiple payments to many creditors, but have not yet defaulted on your loans and will have the ability to make payments to the debt consolidation loan. As always, we would advise speaking to a professional debt adviser before making any decisions. Call us today on 0800 112 4313.