Debt consolidation means you deal with just one creditor and make one monthly payment instead of having lots of different bills to worry about. As part of our free debt counselling service, we can help you decide if debt consolidation is suitable for your circumstances.

Debt consolidation advantages

Debt consolidation can help you organise your finances as it's easier to keep track of just one loan and make one monthly payment for all your debts.

Debt consolidation disadvantages

However, there are situations where debt consolidation doesn't help and actually makes the problem worse. For example, a debt consolidation loan might carry more interest than the separate debts combined, or work out more expensive over a longer repayment period.

Also, you might find there could be penalties or fees incurred for settling your existing debts early.

Debt consolidation advice

As a registered charity, we can discuss the advantages and disadvantages of debt consolidation with you. We can also provide you with information and guidance on all kinds of other debt solutions. Our online service, CCCS Debt Remedy, is completely free of charge and confidential, and identifies the most appropriate solution to your debt problem.