Debt Consolidation Help & Advice In The UK

Fast ways to sort out your debt problems…

What is Debt Consolidation?

Debt consolidation is the name given to the process of consolidating debt, such as a mortgage, loans, bank overdraft, credit cards and store cards into a single mortgage or loan with a lower monthly payment arrangement. This new finance arrangement can be a new mortgage or secured loan, with the mortgage option generally being the one that will deliver the biggest reduction in monthly outgoings. The other option mentioned is a loan secured on your home, which is known as a secured loan, also referred to as a second mortgage.
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 Debt Consolidation help – Is it right for me?

Depending upon your individual circumstances, you should consider debt consolidation if you are:

  • Having trouble keeping up to date with the repayments for your existing debts.
  • Experiencing problems meeting your day-to-day expenses.
  • Struggling with your existing debts? Would like to combine your debts into one, lower monthly payment.
  • In need of reducing your regular monthly payments to a new lower amount.

Debt Advice Consolidation Options – The Pros v Cons…

Pros

  • Reducing your monthly outgoings dramatically with a new lower monthly payment.
  • A combination of high interest rate finance replaced with a new lower rate.
  • Consolidating debt is useful for combining multiple debts into one.
  • Stops your creditors from pestering you because you cannot make regular payments.

Cons

  • Remortgaging – Extending the term to in some cases over 20 years, although the monthly repayments may be attractive, check out the total amount repayable!
  • Considering a secured loan or mortgage as an option to pay off your debts, you should bear in mind that if you are unable to meet your financial obligations then you may be forced into selling your house (repossession).
  • Normally, you will be extending the length of time you will be in debt. Therefore, you should have a Debt Management Strategy to avoid increasing your debt further; our consultants can help with this.
  • The length of a secured loan agreement is fixed, so the length of the agreement cannot be altered without financial penalty.
  • Secured loan rates can vary in line with the Bank of England base rate. So the low rate you were offered initially may increase, but this is the case with many finance arrangements.

Who Regulates Debt Consolidation?

Mortgages

Are you considering taking out a new mortgage to complete consolidate debt? If so you can do so knowing the whole UK mortgage is regulated and overseen by the Financial Conduct Authority. Strict guidelines are applied defining how you should be treated and what you can expect as far as service is concerned and what you should be told about.

Secured Loans – Compare loans

If you are considering re-mortgaging to release equity in your house then the company that you use must be registered with the FCA. This requires them to provide you with certain information before you sign a contract – Click to contact an approved government Debt Advice specialist.
If your secured loan is a second charge then currently the FCA does not regulate this in the same way as it does mortgages. The secured loan company must have a Consumer Credit License issued by the Office Of Fair Trading. This imposes certain conditions on them which require them not to mislead you.

How to apply for Debt Consolidation

It’s Easy! Simply complete our online enquiry form and our consultants will provide debt advice, consolidation tips and work on your behalf to secure the best options available to you. The debt consolidation help will including discussing your options, so that you can choose your way forward. To help you with this, we have provided a Debt Consolidation Calculator to work out which debts to consolidate and how much money you can save by consolidating debts.

How long does it take to set up a Debt Consolidation?

Debt Consolidation Mortgages

Generally, we can have a mortgage offer to you within 10 – 14 days from your decision to go ahead and from that point it is down to you to sign and return the papers and the whole process can be completed with the following 4 – 5 days.

Debt Consolidation Secured Loans

Depending upon which provider you use, some can do it relatively quickly, i.e. within days, whilst others may take longer, carrying out a valuation of your house and income etc. may add a couple of weeks.

What happens to my credit rating by consolidating my debts?

Paying off debt will not have a negative impact on your credit rating. However, your credit rating may be impacted if you have missed payments, defaults or CCJ’s registered against you.

Fees – How much will consolidating debt cost me?

The costs, how much you can borrow, over what length of time and the Annual Percentage Rate (APR) will depend on:

  • the value of your property
  • your ability to repay the loan
  • your personal circumstances

What Next?

Simply complete our online enquiry form by clicking the “Enquire – Free Debt Advice” button further up the page. You will access expert money advice and find out what your options are and what you can achieve by consolidating your debts or by looking at all your options for getting out of debt.

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