What is a consolidation loan?
A consolidation loan is a loan you take out with the purpose of paying off existing creditors. This could be a good option for you if you have several debts. It can help you reduce the monthly repayments to your creditors, however in most cases, lenders will require you to be a homeowner and you may have to secure the loan against your property.
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on a mortgage or any debt secured on it. All rates vary subject to loan amount, loan type and status. Repaying your debt over a longer period of time may increase the amount you pay.