In broad terms, debt consolidation means combining all your unpaid debts into one loan in order to pay them off at a lower interest rate and gain greater control of your finances.
If you are struggling to balance your debt repayments, consolidating them all into one can be an efficient way of solving the problem. It can also help reduce the stress of increased interest rates, as you can normally get a lower overall interest rate during the introductory offer.
While there are many benefits to debt consolidation, it can be a risky proposition if you don’t take appropriate precautions.
You can consolidate your debt and reduce your repayments by doing one of the following:
Yes – although it can be a prolonged process. Not only will you need to create a plan to pay off your outstanding debts, you’ll also need to ensure you: