What is debt consolidation?

What is debt consolidation?

Robert Sinclair (Director, AFB) gives expert video advice on: What is debt consolidation?; Why might I get a loan to pay off my debts?; Is debt consolidation a good idea? and more...

If you have through a series of accounts and credit cards have incurred significant amounts of borrowings. Many people find that they have reached the situations where they are struggling to make eats meat, peoples cash flow as people call it, is getting into difficulty. At that point many people find it useful to take all of these debts and consolidate them, add them up into one large loan and take that out through a borrower and set a regular repayment programme. This often has two effects, firstly it reduced the amount of interest that they are paying to a range of people into one place but it reduces the amount being paid. And that therefore allows them to take it over a longer term often as well and therefore it reduces their monthly repayments, therefore it helps there cash flow and helps them live more effectively.