Why might I get a loan to pay off my debts?

Why might I get a loan to pay off my debts?

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 significant debts, or debts are reaching a point where they're causing pressure on you, adding them together and repaying them through one loan can be better. This can be better because you can get a lower interest rate than those on the component parts. Also, you can take some of these loans and extend them over a longer period. Both of these will effectively reduce the amount that you have to pay each month better, and this helps in budgeting.