Debt consolidation involves taking out one loan to pay off other loans.
This leaves you with just one debt and one monthly repayment, which might make it easier to manage your outgoings.
It could be useful if you’re struggling with repayments or want to make your life simpler by streamlining your outgoings.
Debt consolidation loans come in two forms: secured and unsecured.
To find out more, read review and compare secured loans and unsecured personal loans.
Here’s an example of how a debt consolidation loan could look over a 3-year period:
Amount borrowed (for 3 years) - £6,000
Representative APR rate - 6.1%
Annual interest rate - 6.1%
Monthly installments - £182.36
Total charge for credit - £564.86
Total to repay - £6,564.86