Debt Consolidation Advice

1. Is it cheaper ?
   The main reason why loan consolidation reduces monthly payments is because the term (duration) of the loan is usually longer than some or all of your existing loan terms. Use the loan calculator to check the total cost of credit and consider how much longer it will take to repay the loan before entering into an agreement
   
2. Lower interest rates
   Consolidation of finance usually means putting a number of debts under one roof. As a general rule, loan companies offer lower interest rates when larger amounts are borrowed. Pooling your debts together could mean you pay a lower rate because the total amount puts your borrowing onto a different interest rate tier.
   
3. Address the problem
   If you are seeking debt consolidation because you have built up debts that you are unable to manage, you need to consider cutting up those credit cards to ensure you don't end up with a worse problem in a few years time.
   
4. Handling Bad Debt
   In the event you find yourself unable to make a payment, dealing with on company can reduce the administrative charges involved and ease the management of the problem.
   
5. Secured or Unsecured
   Consolidation loans often come in the shape of a secured loan (ie a loan where you agree to lose your home in the event you find yourself unable to pay. Think long and hard before entering into a secured loan and ensure you are adequetly protected against loss of income.