Debt consolidation
A debt consolidation loan or mortgage is used to pay off existing (often unsecured) debts, resulting in just one monthly payment. This is far simpler to manage, and can save you money in many cases.
What are the benefits of debt consolidation?
- Reduce rates on high-interest debt (in some cases)
- Reduce payments without affecting your credit rating
- Make just one payment every month
- Know exactly when your debt will be repaid
- Reduce monthly payments by spreading them over a longer period
You have two ways to consolidate:
Are you paying off credit cards, store cards, overdrafts or other unsecured debts? If so, a debt consolidation loan could be the ideal solution for you: pay them all off in one go and start making just one repayment per month.
If you're a homeowner, you could bring all your unsecured debts into your monthly mortgage payment - and seriously reduce the interest rate you're paying.
