Consolidate Your Debts

ConsolidateDebtsUK.com is aimed to help you consolidate your existing debts and planning your finances. On this site you will find informative articles explaining in clear language what choices may be available to you if you are looking at consolidating your debts and the pros and cons of each option. We are not looking to steer any decisions you make but provide the information and tools you need to make an informed decision yourself.

Before you start reading about the available options for consolidating debt. You will need to look carefully at your financial situation. Your incomings, outgoings, employment status and whether you have had any credit problems in the past such as a CCJ or mortgage arrears are all factors in what debt consolidation options will be available.

We will briefly run over the options here, but please take the time to look through the site and read the articles and use the budget calculator to get the complete picture before applying for help.

To sort out your debts, there are basically 4 options. We will go into more detail further in, but we will give you an overview here.

Secured Loan

A secured loan is exactly how it sounds and may be an excellent option for home owners. Any loan taken out is secured on your home. However, if you are a homeowner and owe a larger amount of money, this could be a realistic option for you and is well worth considering. For more detailed information on Secured Loans, visit our Secured Loans section.

An IVA (Individual Voluntary Arrangement)

There is a lot to learn about an IVA, and we will explain everything in detail further in, however here are the basics. An IVA may be an excellent choice if you have a lot of unsecured debts (loans, credit cards, overdrafts store cards etc.) Many people mistake an IVA with bankruptcy, it is not. It is a legally binding agreement between yourself and your creditors which has to be set up by a licensed third party.

Once an IVA has been set up and agreed. It will last for 5 years and you will pay your Insolvency Practitioner a set amount every month which will be distributed amongst your creditors. You will not be asked to pay more than you can afford and when the term of the IVA is completed, any remaining debt will be written off and you will be considered debt free and are free to begin rebuilding your credit record. For more information on IVA, look at our IVA section.

Debt Management Plan

If you have under £10,000 of debt and are not a home owner. A good option could be a Debt Management Plan. The idea behind a Debt Management Plan is that a third party deals with your creditors on your behalf. You do not have to worry about it and any threatening action should stop.

Your Debt Management Advisor will negotiate with your creditors to try and get any additional interest and charges stopped and organise a repayment plan that you can afford and because you may not have to deal with additional charges, you have a realistic chance of paying off your debts. For more information on Debt Management Plans, visit our Debt Management section.

Unsecured Loan

An unsecured loan is given out based upon your credit history; it is usually for a small amount. If you have under £3000 of debt, your bank or building society may offer you an unsecured loan based upon your circumstances.

If your bank or building society have already turned you down and you wish to pursue getting an unsecured loan, consider carefully if you have a poor credit history as you are likely to find that any unsecured loan you are offered will be low in amount and subject to fairly steep APRs. Visit our Unsecured Loans page for more information.

To speak to one of our friendly helpful advisors complete the application form or free phone 0800 015 3103 now.