Consolidation Loans
Often when people are struggling to pay their debts every month, due to having a number of credit cards and loans, they apply for a debt consolidation loan. This is where they borrow enough money to pay off all their debts (i.e. credit cards and other loans, not mortgage). This helps to reduce your monthly outgoings, as you would be paying one amount each month, this will be lower than you were paying before. Also the interest rates are usually lower compared to credit card rates.

You should think carefully before taking out a consolidation loan, as there are downsides. Firstly, it is usually people with bad credit histories who apply for debt consolidation loans and once the loan is successful, they may be tempted to spend on the cards they have just cleared, for example, a credit card or store card, so may find themselves in more debt than before. Also the term for a consolidation loan is usually over a longer period.

We will search our panel of lenders to find the best deal for your circumstances.