The Pros & Cons

Consolidating all your debts can reduce both the interest and the amount you are paying each month It can also make your debt much easier to manage. This may also mean it will take longer for your debt to be repayed, which could cost you more in the long term.

Present Market Situation

We can never be sure what the economy status will be like for the future, or even what your own financial situation will be for that matter. You may be able to afford your repayments today, but maybe not tomorrow if your salary decreases. Who knows you may change job roles and end up with a larger salary which means you can pay all your debts off even quicker. In the long run, consolidating your debts could free up the cash you need to bring your expenditure back in line with your income.

In a Credit Crunch

Today’s credit markets might make debt consolidation loans a bit less attractive than they were before. Lenders are having to pay more for the money they borrow, which means they have to charge more in return.

The Alternatives

You can consider other options for solving your debt. For example, a a debt management plan or an IVA. It’s important to speak to a debt adviser who can help you understand what’s right for your situation.