The selling point used to advertise these loans is that they supposedly make life easier for the debtor, as they will have just one payment to make every month and one creditor to deal with. However, we strongly advise caution when considering a debt consolidation loan, as you could end up paying more; either through higher interest or a longer repayment plan.

Consolidation terms and conditions

The terms, conditions and interest rate you are offered will vary according to the size of the loan, your credit rating and your income.

Some debt consolidation firms offer secured loans, meaning the debt is secured against your property. We strongly advise you against taking out one of these loans, because your home will be at risk of repossession if you miss payments.

Debt reduction?

If you are struggling with your debts, a consolidation loan is unlikely to be the answer you are looking for, as it will not significantly reduce your debt and could make your problem worse.

Before entering into an agreement with a debt consolidation firm, we suggest you contact us for free, impartial debt counselling. Our online service, CCCS Debt Remedy, can identify the best debt solution for you situation.