Debt Consolidation Loans

  • Reduce the amount you pay each month
  • Make managing your finances simpler
  • Reduce the rate on high-interest debts

Get debt help today: 0800 195 2911

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What is a debt consolidation loan?

In short, it's a new loan taken out to pay off existing debts. By doing so, you could make managing your finances simpler and even reduce your monthly outgoings.

It can be difficult to budget when you've got several debt repayments going to several lenders every month. But a debt consolidation loan could make things simpler by rolling your debts into one manageable monthly payment.

Lower monthly payments

A lot of people who take out a debt consolidation loan do so to reduce their outgoings. You can do this by taking out a loan with a longer repayment period than the debts you're paying off.

For example, if you've got 3,000 of debt and you're repaying it over a year, it would cost you around 250 a month (plus interest). But by paying off that debt with a debt consolidation loan and repaying it over three years, your monthly payments would be cut to around 83 a month (plus interest).

Keep in mind that a longer repayment period means interest accrues for longer and this means you could repay more overall..

Cut the rate on high-interest debts

If you've got several high-interest debts (e.g. credit cards), using a debt consolidation loan with a lower interest rate could reduce the amount of interest you pay on a month-to-month basis.

To put this into perspective, you'd be paying much less interest on loan repayments with a 10% interest rate than you would over the same period of time on a credit card charging 19% interest.

Debt consolidation FAQ

  1. Is taking out a new loan a good idea if I'm already in debt?
  2. Is it easy to get a debt consolidation loan?
  3. What types of debt can debt consolidation loans help with?

1) Is taking out a new loan a good idea if I'm already in debt?

A debt consolidation loan will replace the debts you're paying off, so you don't have to take on any more debt than you're already in. However, whether it's actually a good idea depends on your circumstances.

Debt consolidation loans are designed to help people who are managing their finances well, but want to make things simpler. They're not designed for people with serious financial problems. If you're struggling, you may want to consider a debt solution designed to help with problem debts, such as a debt management plan or an IVA.

2) Is it easy to get a debt consolidation loan?

It's no secret that loans are harder to obtain than they used to be. However, we could still help you find the loan you're looking for.

There are no guarantees, of course, and the stronger your credit rating, the more likely it is.

If you have any existing financial problems that have affected your credit rating, there may be other debt solutions that can help.

3) What types of debt can debt consolidation loans help with?

You can use your loan to repay any kind of debt, whether that's credit cards, store cards, hire purchase agreements, overdrafts or existing loans. The only limit will be how much you can borrow (and therefore how much of your existing debt you can repay).

Consolidate your debts with All About Money

Call All About Money today on 0800 195 2911 or complete the call-back form on this page and one of our expert advisers will call you back - free of charge and free of obligation - at a time that suits you.

We work with a wide range of lenders to find the debt consolidation loan that's just right for you. Just talk to us and we'll see who can give you the best offer.

Get expert debt consolidation adviceIf you would like more information, talk to our team today.

Speak to an expert debt adviser on:0800 195 2911

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17.9% APR (typical variable).

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THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT. DEBT CONSOLIDATION MAY INCREASE THE AMOUNT TO BE REPAID IN THE LONG TERM. Subject to status. A 12.5% arrangement fee is payable on completion. The actual rate available will depend upon your circumstances. Ask for a personalised illustration. Calls may be recorded.

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