| If you are in a difficult situation over repayment of | | | | longer period of time. If you are careful about |
| debts, you need some help. It can be in the form of an | | | | managing your debts, this process can help you a lot. |
| independent financial advice or monetary assistance. A | | | | You can simply get rid of the hassles in dealing with |
| nation that owes more than £1.3 trillion needs to | | | | several lenders. Debt consolidation can be done with |
| understand the implications of excessive borrowing. | | | | unsecured loans also. These loans can help you with a |
| Your personal debts can, if used properly, can be | | | | maximum of £25,000. Lenders do not provide |
| beneficial. But, when you tend to over-indulge, the | | | | more than this amount without security. |
| financial problems might crop up. | | | | Reduce your monthly payments |
| In simple terms, debt consolidation is a process that | | | | When you consolidate your debts, you can spread out |
| helps you in repaying your existing debts and creates | | | | the repayments over a longer period of time. This |
| a new loan liability of the same amount. The net effect | | | | gives you time to recover from your financial |
| is that you have one manageable debt in place of | | | | problems. Less monthly outgoings mean that your |
| many small debts. You will still have to pay back all the | | | | debts become easy to manage. Many people often |
| money and the debts will remain the same. However, | | | | pay the 'minimum payment' allowed on the existing |
| the terms of repayment may change according to | | | | debts by opting for 'Interest Only' method of |
| your circumstances. | | | | repayment. This means covering the interest |
| With the help of debt consolidation loans, you can | | | | component only and repaying the principal amount only |
| reduce your monthly outgoings, pay a lower rate of | | | | at the end of the loan period. |
| interest, or be able to spread the repayments over a | | | | |