Consolidation Loan / Re-finance / Mortgage

Apply to a lender to clear your debts.

A consolidation loan basically means that all (or the majority) of your debts are replaced by a single 'affordable' loan resulting in overall lower monthly payments.

Smaller loans, payday loans, store and credit card debts and others can charge high rates of interest and in some cases extraordinarily high rates of interest.

The very best interest rates are usually only available on bigger loans - that means that combining all your debt into one consolidation loan could reduce the overall rate and amount that you pay.

To work out if you can reduce your overall monthly payments you would need to add up all your debts and make a note of the rate you're paying on each. Then, compare debt potential consolidation loans and see what interest rates you could pay.

A consolidation loan will only really help if:

If the above does not apply then it is likely that a loan may make the problem worse

Some Advantages

Some Disadvantages

If you feel that refinancing would be a suitable solution for dealing with your debts then it is strongly advisable to seek independent advice and obtain / compare at least three separate quotes from reputable lenders, carefully checking the terms / conditions / fees / charges / interest rates etc before making any decisions.

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