

Can be in the form of a plan or a loan
One lower monthly affordable payment
Usually more manageable than multiple debts
Debt consolidation is simply a way of putting all your debts into one payment plan or product.
The idea behind it is that the consolidation will have just one smaller and more affordable monthly payment. You will also just have to deal with one company.
| All current repayments on credit cards and loans are converted into 1 monthly payment that is generally easier to manage and keep track of | |
| Interest rates can be usually lower, so you may have a more affordable payment. | |
| Less pressure and harassment in dealing with multiple creditors. | |
| In the long run you may save money and you will have a date when the loan will be paid off if you keep to your repayments. | |
| Could help your credit rating as you will be less likely to default. |
| Don't be fooled into thinking you have cleared your debts. You have just shifted the debt to a different payment plan. | |
| Be wary of interest rates. Try to get a fixed rate if you want a payment that doesn't change. | |
| Debts will be repaid over a longer period of time than if contractual payments were made. | |
| Fees may be payable to arrange the new loan. | |
| If you have a poor credit rating you may have a higher rate of interest to pay which can mean it is less affordable. Another debt solution may be better for you. | |
| If you get into difficulties making the new payments it can be harder to deal with only one creditor if you are then looking at a debt solution for example. | |
If you're juggling lots of different debts on credit cards, store cards and loans it can be very difficult to stay on top of them all. One missed payment can lead to increased debt, bad credit ratings and the spiral of debt will just continue.
Lower your repayments today with debt consolidation
Talk to one of our debt consolidation experts and find out if one of these could be the answer to your debt problems. Freephone: 0800 043 5135