This is a really good question, an answer to which is entirely dependent on your own personal circumstances and ambitions.
Primarily, a debt consolidation loan is used to simplify your money management, by consolidating all of your debts into one simple monthly repayment, but, dependent of your situation, they can also help reduce your outgoings by taking the debts you’re currently paying and clearing them so you’re no longer paying excessive interest rates. It will replace those interest rates with the interest rate of the debt consolidation loan, which would ideally be at a lower level than the level you’re currently paying.
There are, of course, circumstances where a debt consolidation loan may not be the best option for you. As an example, you may have few creditors and be paying a relatively low level of interest. There may also be options where debts can be restructured. Finally, mediation could also be an option, and speaking directly with your creditors and explaining your situation can result in a more manageable financial commitment.
Talk to us and we can go through some of the options.