If you find yourself in a difficult situation with your money and juggling payments to more than one lender then don't assume you are the only one. Britain as a nation, owes more than £1 trillion - yep, you heard me right - more than £1 trillion and that's a lot of noughts!. The idea behind a debt consolidation loan is that rather than trying to pay off the minimum amount for each debt each month, a debt consolidation loan could pay off each individual debt and leave you with just one single payment to worry about each month. Sounds great in theory but is it right for you?
A debt consolidation loan will pay off your existing debts and transfer the amount owed into one single loan with one manageable monthly repayment. You will still have to pay back all the money you owe but with a debt consolidation loan you may be able to reduce your monthly outgoings, pay a lower rate of interest, or be able to spread the costs out over a longer time period. This very often means that although you are managing your monthly cashflow better you will end up paying more (in some cases substantially more) overall because the debt is being paid off over a longer period of time so ....... do the sums and look at all the options first.
