If you’re already struggling to manage your debts, borrowing more in the form of a debt consolidation loan may not be a good idea. If this is the case, you probably need help sorting your debts rather than a new loan.  

You should only consider a debt consolidation loan if: 

• it means you end up paying back less than you would have done (you could pay more overall if have to make payments for longer) 
• it’ll let you reduce your spending and sort your finances out 
• you can afford to make the all the repayments 

Remember to check that any savings you expect to make aren’t cancelled out by charges and fees. 

Even if you have bad credit, you may be able to get a debt consolidation loan. It’s generally easier to get a secured debt consolidation loan than an unsecured one. This is because a secured debt consolidation loan use a possession – usually your home – to reduce the risk for the lender. But if you miss payments, you could lose that possession.  

Taking out a secured loan is a big decision and one that shouldn’t be made lightly. If you’re already struggling with money, you made need debt help rather than a new loan. 

Most non-priority debts can be paid off by a debt consolidation loan. A debt is classed as either priority or non-priority depending on how serious the consequences are if you don’t pay.  The consequences of not paying non-priority debts are less serious than for priority debts. Despite being less serious, your creditors could still take you to court or arrange for bailiffs to visit you. The main non-priority debts covered by a debt consolidation loan are: 

• Credit Cards
• Payday Loans
• Store Cards
• Overdrafts
• Personal Loans
• Lines of Credit

Debt consolidation requires you to borrow more money/credit to repay your original debts and leaves you with one bigger combined debt that you then repay.

There is usually fees and charges applied when consolidating your debts for taking out the additional credit/loan.

If you are thinking about debt consolidation to help you manage your debts, you should also consider the benefits of managing all your debts through a debt solution.

There are different solutions to suit your needs and circumstances and they will allow you to make one affordable monthly payment.

We’ll need to check if our solutions are suitable for you. If not, we’ll suggest other ways you can deal with your debts.

As you’ll be making reduced payments, you'll be breaking your credit agreements.

Depending upon the solution, there may be restrictions. We'll only recommend a solution that's right for your circumstances.

Some solutions are free, others come with a fee.