Debt consolidation

Debt consolidation. Is it right for you?

Debt consolidation loans aren’t right for everyone. It’s important to check all of the other options available and make sure you’re making the right choice.

While consolidating debt often sounds like a promising solution, this could make your situation worse.

What is debt consolidation?

Consolidating debt usually involves taking out new credit to pay off existing credit. Most people do this to reduce the interest rate on their debt, to bring down their monthly payment amount or to reduce the number of companies they owe money to.

Debt consolidation can be a useful strategy in some situations but for many it can involve extra costs, and potentially makes a difficult situation much worse. That’s why it’s best to get expert debt advice before taking out a consolidation loan.

Download our debt consolidation guide (This PDF is not suitable for screenreaders. If you need any help with reading its contents please contact us).

Debt consolidation or debt management?

Debt consolidation and debt management are two different things but it’s easy to get confused between the terminology used when trying to sort out your debts.

Our debt consolidation calculator can help you find out whether you need debt consolidation or debt advice.

Debt consolidation involves taking out new credit to pay off your debts and debt management is where you negotiate affordable payments with the companies you currently owe money to.Both can lead to lowering payments but are completely different ways of dealing with debt. If you’re not sure which option suits your circumstances then we can help.