Debt Consolidation

If your situation seems beyond the help of any measures then you have the option of bringing all your debts under one consolidation loan.

This offers you another way of regaining control, however there are certain aspects that should be looked at as the consolidation loan is usually set up over a longer period than the individual debts, so you will be in debt longer and will probably pay more interest.

Consolidation loan combines your multiple debts into a single loan with lower interest rate. A consolidation loan does not decrease the total sum of money you owe. It simply lets you to pay all your debt and you are then left with a single loan.

There is the option of transferring your balances. Find a credit card company that is offering a lower rate of interest and therefore lower monthly repayments. Many cards offer 0pc interest for a fixed period of between six and nine months, so take advantage of levels like these.

Work out if you can pay the debt off within the 0pc time period. If you can, this is the right method, as you will not be paying interest on your debt.

Even if you can't repay within the 0pc period, you could shift your debt every time the special offer ends to another 0pc balance-transfer card.

Traditionally, a mortgage was the cheapest way to borrow money. This is still the case and paying off your debt through increasing your mortgage is a good way to control your financial situation. But in addition, you must ensure that you make your monthly repayment to your mortgage provider otherwise you risk losing your home.