FAQs*

What is debt consolidation?

If you owe a lot of money to different lenders at different rates of interest, then you are likely to be getting a raw deal. Similarly, if you are struggling to make repayments because of the level of debt then you should consider debt consolidation. Debt consolidation is the process of combining all your existing debt and re-negotiating the terms of it. This is often done through the creation of a new loan account which pays off existing debts and enables you to pay off interest on this new, one loan at a lower rate. If your credit and store cards are charging you interest up to 20%, then a consolidated debt at a rate of 11% can save you pounds.

There are also debt consolidation companies that can try to renegotiate the terms of your debt with your creditors and give you a revised monthly payment schedule. They will charge a fee for this, but this fee and your revised monthly repayment schedule should be less than what you were paying before, thereby saving you money. There are many such companies to choose from and you should shop around to find one that meets your needs.

If you are not sure as to whether you require debt consolidation advice, or whether you can cover existing debts with a new loan, then please give one of our friendly advisors a call.

*Nothing in these FAQs constitutes advice and is intended for general information purposes only. For qualified advice, please speak with UK Personal Loans Limited 08000 196 777.