Consolidate expensive debt to reduce interest, lower payments & stop late fees

Access the money tied in your home to get great consolidation loan rate from leading UK lenders

How do I know if I should consolidate my debt?

When is the right time to consolidate your debt?

If you have loans, credit cards, overdrafts or store cards you may be considering a debt consolidation loan. Debt consolidation loans have many benefits and can help you simplify your finances and save money.

If you’re thinking about a debt consolidation loan, here are three indicators that the time is right to apply.

You’re paying too much interest

If you have various unsecured debts then the chances are that you are paying high rates of interest. Figures from the Bank of England in March 2012 showed that the average lending rate on overdrafts is 19.5 per cent - the highest since comparable records started.

The average interest rate being charged on credit cards is 17.3 per cent - the highest for 11 years – while the Daily Telegraph reports that around two thirds of store cards have interest rates of 25 per cent or over.

Your interest payments on these types of debt can soon add up. So, if you’re paying high rates of interest on your debt, it could be the perfect time to consider a debt consolidation loan.

Debt consolidations loans will generally have lower interest rates than other types of borrowing. This is because they are often secured on your home, meaning the lender has your property as security for the loan.

If you were to take a debt consolidation loan for £20,000 that was 5 per cent cheaper than your various credit cards and loans, you would save £1,000 in interest every year.

You’re struggling with all your monthly payments

Making the minimum payments to all your loans and credit cards can be tough. Even if you have a number of small credit or store cards payments the monthly cost can add up.

If you are struggling to pay all your various debts each payday, it may be time to consider a debt consolidation loan.

When you take out a debt consolidation loan you can choose what term you take your loan over. This ensures that the monthly repayment is affordable to you. You will therefore often find that the cost of your debt consolidation loan repayment will be less than the total cost of your previous monthly outgoings. This can help you manage your finances and get back on an even footing.

You’re struggling to keep control of all your different debts

If you have various debts with lots of different creditors, keeping on top of them can be difficult. You may have a number of direct debits, receive several statements each month and have a number of different creditors to keep in contact with on a regular basis.

A debt consolidation loan helps you to simplify your financial arrangements. Instead of multiple payments to a range of creditors, you will have one monthly payment to one lender with one point of contact.

Clearing all your smaller debts with one simple debt consolidation loan can make managing your money much more straightforward.

Share/link this page, so more people become better at managing their debt. Also if you need a secured debt consolidation loan, fill this form.