Consolidating debt into one loan normal comes with a lower interest rates, but there is a catch.
Your consolidation loan may result in lower monthly payments, especially compared to store and credit cards. However the catch is that the term of the loan is longer and therefore you’ll be paying back more interest in total.
You may save money on a debt management programme. An added benefit of this is if you fall into difficulty when on debt management, you can renegotiate repayments to suit affordability. This may be harder if you only have one creditor and may put your home at risk if the loan is secured on your property.
