You may only have a few debts, which could be settled if you borrow more money for example by increasing your mortgage. This would allow all of your debts to be turned into one liability and you would only be required to make one payment.
Consolidating debt can also involve taking out new credit in the form of a debt consolidation loan to pay off existing credit. Extra costs can be involved, and to understand the risks it’s important to get impartial advice before going ahead, this is where we can give you the right advice.
QUESTIONS & ANSWERS
What is debt consolidation?
Debt consolidation means obtaining one loan in order to settle two or more existing debts, such that the number of creditors is reduced. Instead of making multiple monthly payments to individual creditors, you make one payment to cover all debts.
Do I have to own a house to apply for a debt consolidation loan?
No, you can apply for an unsecured loan to consolidate your debts as opposed to a loan that is secured over your property.
How do I get a debt consolidation loan?
To get a debt consolidation loan you would need to first calculate the amount you required to borrow (ie. the total of your debts) and what you could afford to repay per month. You would then need to contact a debt consolidation loan company who would assess your circumstances and decided whether to lend to you.
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