This loan will allow you to pay off several debts and pay one single monthly repayment so you don’t have to manage various debts at the one time. You need to make sure that the consolidation loan is enough to repay. There are two types of debt consolidation loan to consider:
- Secured: The amount you borrow is secured against an asset such as your home and this type of loan is often referred to as a homeowner loan.
- Unsecured: This debt isn’t secured against any other assets. You could consolidate up to £25,000 using an unsecured personal loan.