Consolidated loan
Debt consolidation is one way of turning all your streams of credit into a single and more manageable loan, ideally with a more favourable interest rate than you may already be paying to service your various debts.
Consolidated loans can be both secured and unsecured and which one you choose will depend on your circumstances, how much you want to borrow, and your credit score.
Good as this may sound, consolidated loans should be managed with care as you may slide back to higher spending having reduced your monthly repayments. You may also end up paying more in the long term as you borrow for longer periods which will increase the amount of interest you pay on the amount you borrow.
If you have lots of smaller debts then an unsecured consolidated loan may be a good option for you however if you have already consolidated your loans before then you should find another way to pay off your debts. Most debt counsellors advise that you should seek professional independent advice on how best to manage your debts, whether you go for a consolidated loan or simply tighten your belt for a while.
