Consolidating Personal Debt

Be particularly careful if the consolidation loan is to be secured on your house, as failure to make the repayments may cost you your home.

Whilst care should be exercised before consolidating debt, the practice can be of use if they reduce the amount paid each month in interest provided they do not come with onerous repayment terms or put you at risk of losing your home.

Although Chamberlain & Co does not itself provide consolidation loans, we do have contacts with various financial institutions, finance brokers and independent financial advisors who can provide details of available loans.

Advantages of consolidating debt

• Ability to deal with one creditor rather than numerous creditors.

Disadvantages

• Length of time to settle consolidation loan.
• Interest on consolidation loan may be higher than a normal loan.
• As paying off debt over a longer period of time, this may result in a greater overall amount payable.