Debt Consolidation Loan

This involves transferring debts with higher interest rates into one loan with a lower interest rate.

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This Guide Includes

1. What is a Debt Consolidation Loan?

2. What’s an unsecured Debt Consolidation Loan?

3. Debt Consolidation Loan - Things to consider

4. Criteria for a Debt Consolidation Loan

5. Advantages of a Debt Consolidation Loan

5. Disadvantages of a Debt Consolidation Loan


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What is a Debt Consolidation Loan?

This involves transferring debts with higher interest rates into one loan with a lower interest rate. To make this a worthwhile option the interest rate of your consolidation loan should be at a lower rate than your current credit agreements. This could enable you to make a saving on monthly repayments.

Note: Refresh Debt Advice is not a credit broker or lender. We do not provide credit services.

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Our team of advisers are here to support and advise you every single step of the journey.

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Debt consolidation loans aren’t right for everyone. It’s important to check all the options available to be sure you’re making the right choice. While consolidating debt often sounds like a promising solution, it could make your situation worse. It may not be an option at all if you have a poor credit history.

Whilst monthly repayments on a consolidation loan may be lower than the total of all the monthly repayments on your other loans this may only be because the loans are repayable over a much longer period of time. Again, the overall cost of the loan over the entire period can be quite high.

What’s an unsecured Debt Consolidation Loan?

Unsecured means the loan isn’t linked to your home. Some consolidation loans require you to secure the loan against your home. However, if you fall behind with payments and can’t afford to repay what you owe, you’re at risk of your home being repossessed.

Debt Consolidation Loan - Things to consider

If you have lots of debt, or if you’ve missed payments on your debts, this will have affected your ability to borrow more money. You might find that the only way you can borrow more money is at a higher interest rate. This means that you could end up paying more money back over the lifetime (or term) of the loan.

Debt consolidation loans may be a good option if you have a lot of expensive borrowing on things like credit cards which carry high monthly repayments and high interest rates.

We recommend speaking to an expert debt adviser before taking out a consolidation loan.

Criteria for a Debt Consolidation Loan

Have a number of debts you with to combine into a single loan with the goal of making a saving on your monthly repayments.

Debt consolidation and debt management are two different things. It’s easy to get confused by the terminology used when trying to sort out your debts.

  • Debt consolidation involves taking out new credit to pay off your debts
  • Debt management is where you, or a debt management plan provider such as refresh, negotiate affordable payments with the companies you owe money to.

What are the advantages of a Debt Consolidation Loan

  • It could reduce the overall cost of borrowing.
  • It could lower your monthly repayment.
  • It will put all of your existing debts into one monthly payment for convenience.

What are the disadvantages of a Debt Consolidation Loan

  • The consolidation loan could carry a higher interest rate.
  • You might have to pay it back over a longer time period, making it more expensive to pay off.

Reviews & Testimonials

Charlotte
2021-05-04
I really appreciate the support I was given regarding debt advice. I was provided with the upmost respect and there was no judgement at all. As difficult as it was to go through my situation, the advisors made me feel comfortable and were able to support me to find a solution to better manage my debts. A huge thank you to Jay and Keeley.
IB Whittaker
2021-04-28
I was in a really bad situation due to a sad divide between my family but when I came to Refresh Debt Services, my mind was almost at complete ease. Keith Brady in particular is a lovely advisor and does his utmost to not only help, but follow each step along the way with perfect understanding of each situation. Couldn't recommend this company enough.
Michelle D'Arcy
2021-04-28
Keith was great! constantly asked if I had any questions, made sure I understood everything, didn't rush me when I was getting information. Totally professional but also put me at ease and we even had a little joke. The weight of the world has been lifted off my shoulders. 100% recommend them.
Craig Newkland
2021-04-28
Very very good service and advice. People at Refresh are friendly, polite and knowledgeable. Would recommend to anyone.
Linda Harvey
2021-04-27
From the day i started my DMP the team have been more than helpful and respectful. Over the Last years i have had know reason to contact Refresh as i never had any issues with my payments ect. In the last week as my DMP has come to an end i needed advice and support with being able to show proof my DMP had come to and end and i now owe nothing, but also a huge weight lifted from my shoulders. Brenna my account manager was soo helpful and understanding and took her time to chat to me and send me all the info i had asked for. These people are not judgmental or insensitive, just helpful people trying to help you get back on track!! Thank you
jean roaach
2021-04-17
I found refresh very helpful when I was struggling with my debts. I received monthly statements and updates on what I was paying and when things changed and was only to happy to help with any problems I had all ways pleasant on the phone and understanding. Lucky enough I am debt free thanks to refresh would highly recommended them
Sarah
2021-04-15
Keith was so helpful! Made me feel very comfortable to talk to him about the help I needed. Would recommend anyone who is struggling to talk to him! Fantastic service! Couldn’t be more grateful of his time and help!
Carolyn
2021-04-03
Keith was absolutely brilliant. I was a victim of a sophisticated Bitcoin scam which has been largely responsible for my present financial predicament and I feel embarrassed and ashamed that I allowed this to happen to me.As a result I was really scared as I began to think that everything was fraudulent including Debt Management agencies. Right from the start I felt safe and reassured with Keith. He not only knew his stuff but validated my feelings and perceptions, was not at all judgemental and his concern and empathy were genuine with marked social, psychological and emotional intelligence and sensitivity. For the first time since I realised I had been scammed I could sleep. I felt protected and I still do. He would make a very good psychiatrist.
customer
2021-04-01
From the moment I spoke to Keith he put me at ease. He professionally took me through the possible steps, answering any questions that I had and his empathy and reassurance was very appreciated. Once I came to a final decision on what I needed Keith again answered any other questions and quickly put the plan into action. Honestly I had spent so many days/nights worrying about the debts once I had finished talking to Keith I felt like a huge weight was lifted from My shoulders!! I can’t thank Keith enough for taking the time to listen and then implement the plan for me! 10/10
Zdenka Suchankova
2021-03-29
Its a very friendly staff, just 5:45 I wait for next phone call and now its a5:50 and nobody call me. Something wrong?

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