Why take out a debt consolidation loan?
Got a store card here, and a credit card there? Finding it hard to keep on top of several payments going out on different days of the month? A debt consolidation loan is one, single loan which can be taken to pay off several other debts including loans, store cards and credit cards.
As a debt consolidation loan could allow you to put your existing debts into one place, you’ll have one, simple monthly repayment on a set date, rather than lots spread out. Reducing the number of payments going out of your account on a monthly basis could help make it easier to keep on top of your outgoings. If the rate on a new consolidation loan is lower than that on your existing borrowing, it could also help you to save money on your monthly loan instalments in the short term. However, if you consolidate over a longer period, it could cost you more over a longer period of time.