A debt consolidation loan is a way of repaying all of your outstanding debts by taking out a single, large loan.

What is a debt consolidation loan?

If, like many of us, you owe money to lots of different people, you know how complicated it can get to keep all your finances in line and eventually you may begin to miss regular payments which could lead to your debts spiralling out of control.

With a debt consolidation loan, you take out a loan large enough to repay all of your debts leaving you with just one manageable debt.

Benefits
  • Only one debt to remember to pay.
  • Just one interest rate.
  • Easier to manage.
  • May improve credit rating as you pay off other debts.
Considerations
  • You’re taking out another loan.
  • Could be high interest rate.
Not sure which debt solution is right for you?

Finding the right debt solution can often be a daunting task – that’s where we come in!

Take our debt test

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0800 988 2318

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Our advisors are all trained to help you find the best solution to your financial situation.

Money Advice Service

The Money Advice Service

To find out more about managing your debt and receiving free debt advice visit moneyadviceservice.org.uk or read the article Options for Paying off your Debt.

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