Debt Consolidation Loans

On occasions, it may be necessary to source a debt consolidation loan to clear existing debts and reduce monthly outgoings, particularly if you have not missed any payments to credit debts and you are desperate to maintain a perfect credit rating.

This is only recommended if you have prepared a detailed income and expenditure and can comfortably afford the monthly repayments. (Always include a good margin of error as your income could be temporarily reduced if are off work ill or you have unexpected costs such as needing a new boiler, structural repairs or another mouth to feed).

Repayment protection insurance is often sold with large debt consolidation loans, but the level of cover can be relatively low. It is recommended that you look closely at the policy before signing as it could add several thousands of pounds to the loan. Alternatively you can speak to a specialist insurer or even take out a full Personal Accident, Sickness and Unemployment Insurance Policy.

If you have been refused for a loan, you could try a Debt Management plan.

For immediate and free debt advice please call Payplan free on 0800 917 7823 or use our Debt Calculator to submit your debt problem online.

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