Manage Your Debt UK

Consolidate Debt

When you consolidate debt, you undergo a process whereby all your debts are put in one place and you pay one payment a month. Usually debt consolidation loans are at a lower interest rate than your original borrowing (although not always). Thus allowing you to save money and pay off your debts more quickly.

For a lot of people wanting to sort out their debts a debt consolidation loan is a good choice, and this can be especially true when it comes to debts from credit cards and other unsecured debts as these are usually subject to a higher interest rate. By moving them into a debt consolidation loan, you immediately lower the overall interest you are paying meaning you can pay off the balance of the debt more quickly. At least that´s the idea.

Being able to consolidate debt is not always the best solution, and if you've had debt problems in the past, it may be impossible for you to consolidate your debts.

Many people try with the best will in the world to sort out their debts this way and fall into the trap of getting a loan to cover some of their debt and finding it makes the situation worse because they either forget to close the accounts, or keep them around for emergencies. Then they start using their cards again and things are twice as bad, so it makes sense to think about all the available choices before you make a choice on which option best matches your requirements.

Often talking through your debt concerns with someone impartial can help. For a free no obligation assessment of your situation complete the form on this page or call 0800 015 3103 and speak to one of our friendly, helpful debt advisers now.