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Debt Consolidation
Debt consolidation involves paying off all your outstanding debts using a loan, credit card or other finance facility.
Consolidating you debt makes payment much easier and can lower the interest rate you are currently paying. It also allows for the finance period to be extended making monthly payment much more manageable.
The most common type of consolidation is a debt consolidation loan. A debt consolidation loan can be customised to fit around your level of debt and how much you can afford.
Another option is to use credit card offers where a 0% interest rate is available. This option should only be considered if you are able to pay off the debt before the interest free period expires (unless you can move the balance to another interest free card) otherwise you will be left with a higher than normal intest rate (typically over 18%).
Budgeting your finances is one of the most important factors when considering a consolidating your debt. Committing to repayments that you cannot afford will only leave you with higher debts and more serious financial problems.
A professional debt advisor can help you manage your finances successfully by setting a realistic budget, contacting your creditors and managing the repayment on your behalf.
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