What is debt consolidation and how can it help?

Debt consolidation is a way of rolling multiple debts into one, which can make them a lot easier to manage.

It can help in two ways. Firstly, it can reduce your debt repayments to a more affordable level. Secondly, it can make managing your finances simpler by putting all the debts in one place.

What types of debt consolidation are there?

There are many different ways of consolidating debt repayments. These include:

• Debt consolidation loan
• Debt management plan
• IVA (Individual Voluntary Arrangement)
• Debt Arrangement Scheme (Scotland only)
• Trust Deed (Scotland only)

Each of these solutions is designed with a different situation in mind, so it's important that you understand what each one involves before you make any decisions. Talk to one of our expert advisers on 0800 195 2714 for advice on which solution is right for your needs.

How do I know which option is right for me?

The right solution for you will depend on a number of things, including how much you owe, how much you can afford, how many lenders you owe money to, whether your debts are secured and so on.

If you're worried about your debts, you should always discuss your options with an expert debt adviser. You can talk to one of our advisers on 0800 195 2714, or fill in the callback form at the top of this page and we'll get back to you.

Will debt consolidation stop demands from my lenders?

If you've been receiving letters or phone calls from your lenders demanding payment, the right debt solution could help to put a stop to it. We can't guarantee you'll never hear anything from them, but we can help you to find a debt solution that meets your needs and those of your lenders.

What if I really can't afford to repay my debts?

Even if you can't see yourself ever repaying your debts in full, we could help.

Some solutions, such as IVAs, Trust Deeds and Debt Relief Orders, are designed to write off unaffordable debts - as long as you agree to repay as much as you can. However, these solutions are only available to people who genuinely can't repay everything they owe.

Are there any disadvantages to debt consolidation?

There are disadvantages to any debt solution. Most will have a negative impact on your credit rating, for example, and some may increase the overall amount you pay. To help ensure you find the best solution for your needs, our advisers will explain all the pros and cons to you.