One payment can still represent an expensive debt
Consolidation uses new borrowing to repay existing accounts. The lower instalment shown in an advertisement may result from a longer term, rather than a genuine reduction in the amount payable. Compare fees, interest, early settlement charges and the full schedule against the current debts. Include any accounts that would remain outstanding, since a proposal that covers only some balances can give an incomplete picture of the future budget.
The old credit limits need a plan as well
A workable UK consolidation decision requires both an affordable new repayment and control over the facilities that have been cleared. If those accounts are used again, the household can end up servicing the new loan plus fresh balances. Securing previously unsecured borrowing against a home adds a separate property risk. Independent debt advice can compare consolidation with negotiated repayment arrangements before an eligibility check turns into a contractual commitment.
