Repaying your debts with a single payment per month

12 July2021

Repaying several debts every month isn't always easy. You may find that keeping track of multiple payments and dealing with different lenders makes things more complicated than they need to be.

But as long as you can afford your debt payments every month, there is a simpler option that could help you.

A debt consolidation loan could effectively roll all your debts in one - giving you a single payment to make per month to only one lender.

You can find out more about debt consolidation loans here.

Why would I want to consolidate my debts?

'Debt consolidation' simply means bringing several debts together, which could give you a more straightforward way of dealing with your debts.

A debt consolidation loan is a new loan you could take out, large enough to cover your existing debts. Different lenders will charge different amounts for a loan, depending on how much money you want to borrow and things such as your credit history, so it's important to have a look around to find the best deal for you.

There are various advantages to taking out a debt consolidation loan. You could:

Arrange payments you can afford

If you decide to consolidate debts with a loan, it'll give you an opportunity to sit down and take a good look at your finances - so you can work out exactly how much you can afford to repay towards your debt every month.

You'll have some flexibility when agreeing your payments towards the loan, so you should (within limits!) be able to agree on a repayment schedule that fits your situation.

Our debt consolidation calculator could help you work out how big your payments might be.

Make single monthly payments

If you find keeping track of multiple monthly payments more stressful than it needs to be, having just one lender to repay every month could make all the difference.

By consolidating your debts with a loan, you'll only have one payment per month to budget for and keep tabs on. Just bear in mind that you'll need to keep up with these payments until you've repaid the loan in full - and if you secure the loan against your home, you could risk repossession if you fall behind.

Take some pressure off your budget

Freeing up some room in your budget could help you to afford all your other monthly costs more comfortably - and a debt consolidation loan could help you do this.

Basically, if you decide to repay the loan over a longer timeframe, each monthly payment you'll make will be smaller. Although this could increase the overall cost (as the interest you'll have to pay will grow for longer too), you should be confidently repaying the loan at a pace you can manage - and avoid putting your finances under pressure.

You could discuss whether debt consolidation is right for you with one of our advisers.

Try our debt solution finder

Answer a few simple questions and find out which debt solutions could help you, based on your circumstances.

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Please remember, this is just an information tool. We would always recommend you speak to a debt advisor for the most appropriate way to resolve your debt problems.
We'll give you an on-screen recommendation and call you. One of our advisors will be in touch to answer any questions you may have about your results.
Your privacy is important to us. All correspondence is held in the strictest confidence and we will only request information required to find your debt solution.

Tags: debt, debt consolidation, debt consolidation loan, payment plans, repossession, budget

Fees payable when continuing service is provided. Repaying debt over a longer period may increase the total amount to be repaid. Calls are recorded and are usually free from UK landlines. Mobile phone users may be charged and should check with their service provider. Cards are provided by third parties and are subject to eligibility, status and terms and conditions. Applicants must be UK residents aged 18 or over.

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