Consolidate Debts DEBTS WE'RE a nation in love with debts, borrowing more than pounds 1trillion, Bank of England figures show. And we're not choosy - it's overdrafts, loans, credit cards, store cards and mortgages. Consolidate all your debts into one loan with a cheaper lender. Consolidation can include not only credit card bills, but also bank or car loans that may be on uncompetitive rates or mortgages that are not as competitive as they could be. It is, however, important to remember that although consolidating your debts by re mortgaging can reduce your monthly payments quite substantially, by increasing the time over which you repay your debt in the long run, it will actually cost you more in interest.

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Some of the better rates available for re mortgages include: AN EXCELLENT LOW FIXED RATE One of the lowest rates currently available is from Northern Rock and has a fabulous fixed rate of 1.98 per cent until August 2006, after which it reverts to the standard variable rate.

This deal can be used to consolidate existing borrowing and the lender offers pounds 1000 to help with the cost of re mortgaging.

The deal has an arrangement fee of pounds 595 and you must also pay for the valuation. The penalties last for seven years, with the amount payable varying depending on which year the mortgage is redeemed.

We offer advice and information on some of the following issues :

SHORT-TERM, LOW-DISCOUNT RATE ALTERNATIVE A shorter-term low rate is available from the One Account. This is a bit higher than the offer above, with a starting rate of 3.45 per cent that only lasts for three months, but then it goes on to the standard variable rate of 5.2 per cent, which is a lot lower than the Northern Rock standard variable rate of 6.29 per cent.

This deal is good, as it has no booking or arrangement fees and a free valuation and legal service is provided for re mortgages. It is also suitable for consolidating existing debts and has no penalties on redemption.

A HIGHER TRACKER RATE BM Solutions, the specialist lender of the Halifax group, is offering a tracker rate of 5.24 per cent initially for two years, which is available to those who may have missed a few payments on their credit commitments or had small court judgements in the past.

This could be a good way to get back on track with your financial affairs without resorting to a completely adverse lender. The redemption penalties last two years and are five per cent in year one and four per cent in year two.

There is an arrangement fee of pounds 349 and you must pay for your own survey and legal fees. The interest rate is variable, so if interest rates were to rise, your payment rate would increase.