The consolidation of debt is often advertised as a way of making life easier, as you only have one creditor to worry about and will only have to make one payment each month. However, debt consolidation is often not an effective debt solution. If you were struggling to pay your debts before, then the consolidation of those debts is unlikely to help you, as you will still have the same amount to pay back.

Another point to consider is that your credit rating may have been affected, which means that any further loans you take out could carry especially high interest rates and unfavourable terms. The consolidation of your debts could see you paying more in the long run, either through higher interest or a longer repayment period.

Better solutions to your problem

If you are struggling with multiple debts, there are better solutions available to you than debt consolidation. We strongly recommend you seek professional debt advice if you are in this situation.

Our online debt counselling service, CCCS Debt Remedy, is completely free, impartial and confidential, and can identify the best debt solution for your situation.