Debt Consolidation Loan

Debt consolidation is suitable for some individuals whose debts have not yet grown too large. It involves arranging a new, larger loan that is used to pay off existing borrowing.

Some Advantages:

Lower Monthly Payments: It can bring your monthly payments down because the interest rate will usually be lower and you'll have longer to pay the loan back.

A Large Loan over a Long Time: This is an attractive proposition to a lender, which is why they can offer a lower interest rate (eg £15,000 over ten years).

Borrow up to £25,000: You can borrow up to £25,000 using an unsecured loan – above that amount you would need to think about re-mortgaging instead.

Easy to Arrange: An unsecured debt loan can sometimes be relatively easy to arrange, depending on your circumstances.

Speak to our expert advisors to see whether or not this represents the best choice for you. In particular, you need to consider what the loan will cost you in total and whether or not you can keep up with repayments. There are several potential options open to you, including the IVA, Debt Management Plan or Remortgage and ClearStart can help you assess the right choice if you feel you need some support.