DEBT SOLUTIONS
Debt Consolidation Loans
Frequently Asked Questions
The best way to do this is to shop around for a consolidation loan that will help you to reduce your outgoings and manage your money better.
It is exactly as its name suggests, a loan that allows you to consolidate all your debt repayments into just one – often with better rates and a longer repayment term.
In short, yes. But unlike some other debt solutions, it can actually help to boost your credit score by reducing the number of credit accounts you have on your file.
However, if you continue to use the credit after paying it off or are late with your consolidation loan repayments, this can then damage your credit score.
Work out how much you need to borrow to cover all your debts, including any early settlement fees or charges you will incur, and how long you need to pay it back.
It’s best to then shop about for the best rates and pick the loan you feel is best for you before applying.
By design, debt consolidation should save you money on your debt repayments, as you’ll clear the balances in one go, avoiding years of interest. However, whether you save money with your loan repayments is dependent on the loan you apply for.