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Debt Consolidation Loan

Debt Consolidation loan may be the answer to your debt problems but, like all debt solutions, it depends on your financial circumstances. Read on to find out whether a Debt Consolidation plan is more appropriate for you than the Debt Arrangement Scheme or other debt solution.

What is debt consolidation?

Debt Consolidation is a loan taken out to clear all of your individual debts with one monthly payment. A Debt Consolidation plan allows you to pay what you owe over a longer term by taking out more credit. This consolidates the debt and reduces your monthly payments. The Debt Consolidation loan can take various forms:-

  • A Remortgage
  • Secured Loan / Further Advance
  • An Unsecured Loan

How does debt consolidation work?

Debt Consolidation is a loan taken out to pay off your existing debt. This means you only need to pay one monthly payment at a lower rate for a longer term. Unlike a Debt Management Plan you are taking out additional credit and your financial circumstances will affect your eligibility for this debt solution. Debt Consolidation via a remortgage is when you change your mortgage to another lender. This can mean lower interests rates and repayment costs however your home will be put at risk if you do not keep up your mortgage repayments.

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT

Why would you want a Debt Consolidation Loan?

A Debt Consolidation loan may be the ideal debt solution if:-

  • You want to pay a single monthly payment
  • You have equity in your home
  • You want to pay a lower interest rate

Homeowners can choose to remortgage or take out a secured or unsecured loan.

Call 0141 227 7730 for the best advice on how to apply for Debt Consolidation.

Advantages of Debt Consolidation

  • A Debt Consolidation loan can mean a lower rate of interest
  • A remortgage is more flexible than borrowing from credit cards or overdrafts
  • You can make overpayments, underpayments or take payment holidays
  • There is potential to increase disposable income

Disdvantages of Debt Consolidation

  • You would be securing debts against your property
  • You may increase the payment term of existing debt and interest
  • Remortgaging fees can be an additional cost
  • You can potentially face valuation and legal costs

Find out if you qualify for debt relief




















  • Talk to an expert 0141 227 7730

Brought to you by Peter Dean

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Peter Dean has helped thousands of people with quality money advice, through Your Debt Expert.

Peter Dean is one of the most highly-qualified and experienced debt solutions professionals in Scotland. He established Carrington Dean in 2001 following a distinguished financial career in which he became a Partner with one of the world’s leading accountancy firms and a recognised insolvency expert.

Peter is a Fellow of the Chartered Management Institute, a Fellow of the Association of Business Recovery Professionals, a Member of the Chartered Institute of Arbitrators, and a Member of the Insolvency Practitioners’ Association.

 

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Peter Dean