For instance, if your debt is Credit card 1 - Debt: £2,000 - monthly payment: £70 Credit card 2 - Debt: £3,000 - monthly payment: £110 Personal loan - Debt £5,000 - monthly payment £160 Then your debt is £10,000 and you are paying £340 each month towards your debt.
If it's possible to get one loan which consolidates all of these payments and is cheaper, then this could be an ideal solution.
In today's economic climate it's not generally a recommended debt solution.
Putting your debts in one place is understandable and the phrase debt consolidation is well known.
Sometimes the hardest thing with unsecured debt is juggling all the different monthly payments and trying to manage the interest and charges.
If you miss your payment date and start to receive penalties you can quickly feel swamped by your debt.
If you’re stressed and having trouble paying your debts, get help sooner than later.
You’ll not only have more options and solutions available to you, it will ease your stress and you may even sleep better (we find this is true with more than 60% of the people that we help).
Another route to consolidate debt is to try and release equity from your house and consolidate the debt into your mortgage.We know that it can be hard to ask for help with your debts, so we do everything we can to answer your call quickly, provide you with the information you are looking for and book you a free credit counselling appointment if that’s what you need.Our appointments are either in-person, in one of our offices, or over the phone; whatever is easier for you.Consolidating debt into one loan has become a lot harder because of the credit crunch.If you have defaults on your credit file then applying for credit of £10,000 can be extremely difficult.