Debt Consolidation

Debt consolidation combines debts, including loans, credit cards, store cards, catalogues, overdrafts, or any other outstanding bills, into one single loan. The aim is to simplify your repayments and reduce the anxiety of managing debt.

The types of debts you can consolidate include:

Unsecured debts such as overdrafts, credit cards, store cards, catalogues, payday loans, unsecured loans, doorstep loans, and credit unions.
Arrears from utility suppliers, e.g., gas, electricity, or water.
Council Tax arrears (previous years and current years).
Arrears from previous properties or suppliers, e.g., mobile phones, digital TV.
Debts previously secured against an asset repossessed, e.g., shortfalls on vehicle HP and properties.
HM Revenue & Customs VAT, PAYE, Self-assessed tax, National Insurance.
Debts with a CCJ, attachment of earnings, deduction of benefits or bailiff.
Overpayment of benefits and benefit advance loans.

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Debt Consolidation

debt-consolidation

However, consolidating existing credit commitments should not be considered a cure-all. If appropriately used, restructuring debts through consolidation can help you get debt free faster by reducing the interest burden of existing borrowings and bringing repayments within budget. On the other hand, if there are more serious underlying problems, it may only grant temporary relief before the creditors become unmanageable again.

If you have used our online application form, we will contact you to run through your income and outgoings and discuss your options so you can make an informed choice. At Debt Support Direct, we offer all statutory debt solutions in England, Scotland, Wales, and Northern Ireland so that you can choose the debt solution tailored to you and your circumstances.

If approved, the benefits of Debt Consolidation:

You maybe be able to combine all of your current debt into one affordable repayment.
Instead of dealing with multiple creditors and payments, you would deal with one company and generally make one repayment per month.
This option could ease the financial strain by reducing your monthly outgoings.

Considerations:

The monthly repayments need to be affordable or this could lead to a further reliance on credit.
You are borrowing funds to pay off existing debts, as such your total debt level will likely increase when factoring in interest and charges charged on the consolidation loan.
The amount you can borrow will be largely based on your income and credit rating, as such you may not be able to consolidate all of your debts.

Our debt advice is non-judgmental, and friendly so if you are struggling with debt, speak to one of our experienced debt experts for a confidential chat on 0161 549 9848.

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