What's debt consolidation?

Consolidating credit debt will involve taking right out new credit to repay existing credit usually. Most people do that to lessen the interest on the debt, to lower their payment amount or even to reduce the quantity of companies they owe money to.

Debt consolidation reduction can be considered a useful strategy in a few situations but also for many it can entail extra costs, and probably makes a hard situation much worse. That's why you need to get expert debt advice before taking right out a consolidation loan.
Debt consolidation reduction or credit debt management?

Debt consolidation reduction and debts management are two various things but you can get confused between your terminology used when aiming to sort out your finances. Debt consolidation entails taking right out new credit to repay your financial situation and personal debt management is where you make a deal affordable repayments with the firms you presently owe money to.

Both can result in decreasing repayments but are very different means of interacting with debts. If you're uncertain which option suits your position then we can help.

Try our debts loan consolidation calculator to see whether you will need credit debt loan consolidation or arrears advice. If you want to get improve your financial situation then we'd recommend you utilize our Debt Remedy tool or call our helpline and we'll help you workout an individual action intend to escape debt.