Debt consolidation loans are a practical way to combine your debts into a single monthly repayment. If you are struggling with multiple high-interest debts such as store and credit card debts, personal loans and overdrafts, a debt consolidation loan offers a way to significantly lower your repayments each month.
Debt consolidation loan products are typically secured against your home. Using your home as collateral reduces the risk you present to potential lenders, generally allowing them to offer much lower interest rates and more favourable loan terms.
Debt consolidation loans are also available as unsecured loans, but as unsecured loans carry higher interest rates, the total loan cost will often increase. Also, if your credit score is low as a result of multiple loans and high credit card debts, you are viewed as a much higher-risk candidate by lenders, and may be declined an unsecured debt consolidation loan altogether. If this is the case, you should consider a secured loan to consolidate your debt.
If you are considering a remortgage to consolidate debt, a secured debt consolidation loan may be a better option. Particularly if you are locked into your mortgage or need money quickly, consider a debt consolidation loan and avoid the hassle of a remortgage.
We can put you in touch with the UK’s best debt consolidation loan deals. Simply fill out the form to the right to compare debt consolidation loan options, and speak to an independent debt consolidation loan expert for free, no-obligation advice.