What is Debt Consolidation?

A consolidated loan involves bringing together some or all of your debts into one loan.  It can involve either re-mortgaging or taking out a new secured loan

Secured – The new loan is secured against your property

Single loan – It converts all existing borrowing into one loan with one monthly payment

Reduced rate – The interest rate is lower than the interest rate for credit cards and personal loans

Advantages

• Simple
• One monthly payment
• Reduced interest rate

• Same credit rating

Disadvantages

• Total debt not reduced
• The loan is usually over a long period of time