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There are two types of debt consolidation loan: Debt consolidation loans that are secured against your property are sometimes called homeowner loans.
You are more likely to be offered a secured loan if you owe a lot of money or if you have a poor credit history.
This is usually people’s preferred option since mortgage interest rates are usually much lower than other loan interest rates, and mortgages can be amortized (paid) over 25 years.
This means you can arrange much lower monthly payments than with another type of loan.
There are thousands of companies that claim they can help you consolidate or manage your credit card debt so that you pay less or reduce your payment.
You should get free debt advice before you take out a secured debt consolidation loan.
Before you choose a debt consolidation loan think about anything that might happen in the future which could stop you keeping up with repayments.
Consolidating all your debts into one loan might appear to make life easier but there might be better ways to pay off debts.
Find out more about how debt consolidation loans work, then get free debt advice before you make a decision.
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If you can’t stop spending on credit cards, for example because you’re using them to pay household bills, this is a sign of problem debt.