Common debts consolidated include: • Credit card debt. • Personal loans. • Car loans. • Store cards. • Payday loans. • Sometimes, smaller mortgages can be consolidated into a larger home loan refinance. We can assess your specific debt profile and advise on which debts are suitable for consolidation.

Debt consolidation involves combining multiple existing debts (e.g., credit cards, personal loans, car loans) into a single new loan, often a personal loan or a home loan refinance. Benefits include: Simplified repayments: Instead of managing multiple repayments, you have just one. • Potentially lower interest rates: Debt consolidation loans may offer lower interest rates than some of your existing debts, especially credit cards. • Reduced repayments: Depending on the loan term and interest rate, your overall monthly repayments might be lower. • Improved credit score (potentially): Managing one loan effectively can be easier and positively impact your credit history over time.

Potentially yes, but not always guaranteed. Whether your repayments decrease depends on factors like: • Interest rates: If the consolidation loan interest rate is significantly lower than your existing average interest rate, repayments may decrease. • Loan term: Extending the loan term can reduce monthly repayments, but you'll pay more interest overall in the long run. • Fees and charges: Factor in any fees associated with the consolidation loan. We will carefully analyse your current debts and calculate potential repayment savings with debt consolidation.

In the short term, applying for a new loan and closing old accounts can have a minor temporary dip in your credit score. However, in the long term, if you manage the consolidation loan responsibly and avoid accumulating new debt, it can improve your credit score by demonstrating effective debt management and reducing your credit utilisation ratio (amount of credit used vs. credit available).

Debt consolidation can be beneficial if you are struggling to manage multiple debts, are paying high interest rates, and are committed to responsible financial habits. However, it's not a quick fix if you don't address the underlying spending habits that led to debt accumulation. We can help you assess if debt consolidation aligns with your financial goals and provide personalised advice.

It can be more challenging to get approved for debt consolidation with bad credit, as lenders may perceive higher risk. However, options may still exist, such as secured debt consolidation loans (using an asset as security) or working with lenders specialising in bad credit loans. Interest rates will likely be higher. We can explore available options and help you present the strongest possible application based on your credit profile.