Debt Consolidation Loans

One of the most popular methods of consolidating credit card, loan and bank overdraft debt is move all of your debt to a single loan with a lower rate of interest.

Debt consolidation loans can reduce your monthly outgoings and take the hassle out of juggling several different debts a month and reduce the chance of your credit rating being impaired.

If you have a collection of store and credit card debts and other borrowing commitments, you're quite likely paying more than you need to in interest charges. Credit cards tend to have APRs in excess of 10%, the chances are you can get a loan at cheaper rates of interest than your currently paying. 

However, you should only use a debt consolidation loan if you can secure a low rate of interest which will actually bring your monthly outgoings down.

You should avoid debt consolidation companies as these firms charge for their service so you quite often end up deeper in debt.  They can also damage your credit rating and in extreme cases could lose your home. Instead, by taking out a debt consolidation loan you are taking control of your finances without the need for a company to manage them on your behalf.