Consolidating your debts
allows you merge them together to form a single loan
How does it work?
If you’re struggling to keep up with repayments on several different debts, you may be able to consolidate them – that is, merge them together to form a single loan. This can help you afford your monthly payments, but beware of costly fees and hidden charges.
A debt consolidation company will offer you one of two types of loans:
- Secured (or homeowner) – which are secured against an asset, usually your home.
- Unsecured – which aren’t secured against any individual asset.
You’ll make regular repayments on this loan, with the aim of eventually paying it off in the future. But before you enter into any arrangement, make sure you’ve done your maths – you may end up paying more overall than you owed originally, due to higher monthly repayments or a longer repayment term.
It’s also important to consider anything that might stop you keeping up with repayments – for instance, losing your job, falling ill, or being hit by rising interest rates. With a debt consolidation loan, there’s a lot at stake – perhaps even your home – so it’s a good idea to get advice from a free, independent and expert service like ours.
Get in touch with our team today by calling 0808 164 2480 or filling in our short assessment form.
What to expect
- We’ll use the information you’ve given us on the phone or in your assessment form to establish the nature and urgency of your debt.
- We’ll book you in for a face-to-face appointment at your nearest centre – or a telephone advice session if required – so we can give you a detailed analysis of the help available to you.
- We’ll discuss your options and talk through the pros and cons of each.
- We’ll establish the best possible solution and help you to resolve your debt – whether that’s by means of advocacy, representation or negotiation on your behalf, or by helping you write letters and supporting you throughout the process.
Every year, we help thousands of people to become debt-free.
Debt Free Advice is a partnership of 26 debt charities led by Toynbee Hall, which provides free, trustworthy advice sessions across London. Our service is funded by the Single Finance Guidance Body (previously Money Advice Service) and we’re authorised and regulated by the Financial Conduct Authority.