Debt consolidation benefits and considerations
Debt consolidation can make your debt easier to manage because you have only one payment to organise, possibly making budgeting easier, and giving you only one creditor to deal with.
However, even when a loan might be advertised as 'free debt consolidation' and you do not have to pay any fees to set it up, you still might end up worse off. For example, the consolidation loan might carry higher interest rates or you might have to pay it back over a longer time period, making it more expensive to pay off.
We advise you not to consolidate your debts without a thorough examination of your situation and to find out if it will really help you. We also strongly advise against consolidating your unsecured debts with a loan secured against your property because this would put your home at risk if you fall behind on payments.
We can help you decide if debt consolidation is an appropriate and affordable solution for your situation. If you use our online Debt Remedy tool, we will identify and explain other solutions to fit your specific circumstances.