Debt consolidation
Debt consolidation means you combine all your debts into a single loan. You use the loan to pay off your existing debts and then rapay the loan by making single monthly payments.
Debt consolidation does not change the total amount of money you owe and it does not cancel any of your debts like an IVA. You pay back everything you owe.
However the interest rate on a debt consolidation loan should be less than that charged on credit cards. Therefore the monthly payments on this loan will be less than you pay now.
Debt consolidation allows you to repay your debts in a simplified way.
Debt consolidation may be right for you if you have sufficient equity in your home to repay your debts in full.
We will only offer you a debt consolidation if it is the best option.
