Debt consolidation

With a debt consolidation loan, you could have:

Repay your debts at your own pace

A debt consolidation loan gives you the chance to rearrange your debt repayments, making them easier to manage by rolling them into one and reducing the amount you pay each month.

Simpler finances

One monthly payment to one lender makes it easier to manage your money. It can be difficult to keep up with several different payments each month, but a debt consolidation loan could give you one less thing to worry about.

More money for the good things in life

Paying less towards your debts each month means more money for you. Or you could use that money to help pay your bills or put into savings - it's your choice.

How a debt consolidation loan works

A debt consolidation loan is a loan that can help to reduce the amount you pay each month. By using your loan to pay off existing debts and then repaying it over a longer period of time, each monthly payment will be smaller.

Is it right for me?

A debt consolidation loan could be an ideal solution if you want to make your debts more manageable.

If you have debts like credit cards and overdrafts that are taking you a long time to repay, a debt consolidation loan could help you to combine them with your other debts to make sure you are repaying a reasonable amount each month.

On the other hand, taking out a new loan is not advisable if you have any serious concerns about your finances. In that case, you may be better off with another solution such as a debt management plan or an IVA (Individual Voluntary Arrangement).

And remember to think carefully before securing any loan against your home, as failing to meet all your payments could result in repossession.

Final points

Although a debt consolidation loan could make a big difference to your finances, repaying your debt over a longer period could increase the total amount of interest you pay.

The overall cost for comparison is 15.9% APR Typical.

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THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT. Loans subject to status and where mortgages are involved, subject also to type and value of property. For mortgages, an arrangement fee of 5% of the cash raised, subject to a minimum fee of £495 and a maximum fee of £1,495, is payable on completion. For secured loans a 10% broker fee is payable on completion. The actual rate available will depend upon your circumstances. Ask for a personalised illustration. DEBT CONSOLIDATION MAY INCREASE THE TOTAL AMOUNT TO BE REPAID IN THE LONG TERM.

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