How to reduce your debt...
UK residents have a right to debt help and there are several tried and tested solutions that can help lower your debt payments, freeze interest and charges, and stop pressure from creditors.
If you owe £7,000 or more, you could be eligible for professional debt help to write off part of what you owe. Solutions such as an Individual Voluntary Arrangement (IVA) could hold the key to your debt free future.
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It’s never too early or late to seek help. Take the first steps to regain control of your finances by completing our simple online form
What debt are you most concerned about?
Dealing with debt can be difficult, so we've broken it down into 3 easy steps.
Speak to a debt specialist
Our friendly, experienced team will explain the IVA process.
Explore your options
There’s no pressure to make a quick decision. Our goal is to help you understand if an IVA is suitable.
Choose your debt solution
Select the best fit for your circumstances and lifestyle.
Answer a few questions, so we can find the best way to help
Debt Consolidation FAQs
There are two options when it comes to debt consolidation:
The first involves finding a solution that enables you to combine your debts and deal with them together, generally making one payment towards multiple creditors at a time.
The second is a Debt Consolidation Loan, which means you borrow credit from a lender and use that to cover/close down multiple other debts, leaving you with just the new lender to deal with.
The debts that can be involved in consolidation will depend on the type of solution you go for. Not all debts may be covered, so make sure you know exactly what lenders you will need to keep up repayments to before choosing a solution.
If you take out a consolidation loan, it would be up to you to decide which debts you would like to deal with and pay off first.
Benefits of debt consolidation include being able to streamline your repayments to make them more manageable. Certain solutions also mean that your creditors are not allowed to contact you while you go through the process.
There are certain points to bear in mind when considering consolidation.
With a consolidation loan, it’s important to remember that you aren’t getting rid of your debts entirely – you still owe the same amount of money, just to one new lender.
There are also usually high fees and interest with these loans.
A consolidation loan may be a suitable option in certain circumstances, but it’s not always the answer. If you have struggled to repay your existing debts, you mey struggle to pay back the consolidation loan you have taken out, plus the interest that this may generate.
Everyone’s situation is different, so whether or not you opt to consolidate your debts is entirely up to you. However, it does help people who are owing debts to multiple creditors and are struggling to keep up with repayments.
If you’re in debt, it’s most likely that your credit score is already not looking good. However, the sooner you are on your way with a solution the sooner you can start improving your credit score.
If you take out a consolidation loan, your score will likely worsen as you will essentially be doubling the amount you owe. Even though this money will be intended to pay off debts, it’s still seen as ‘borrowing’ by your lenders, showing that you continue to struggle with repayments.
At Money Advice, we can inform you about all debt solutions available to make your debts manageable and affordable.
We are not a lender, so we do not offer consolidation loans.
Where we can help?
We cover England, Wales and Northern Ireland
We want to help you on your journey towards being debt-free.
We are Money Advice
Why Choose Us?
We provide practical and ethical IVA guidance.
- We can help
We’ll take time to understand your situation. - We resolve
Once you’re ready, we’ll talk you through the IVA process and help make those important next steps. - We listen
When you’re in debt, talking about it can be hard. Our team will take the time to listen to your concerns. - We understand
We’ve dealt with various circumstances and know the importance of receiving the right support.
Thousands across the UK have explored IVAs with Money Advice.
Take the next step towards a possible debt free future. We’re rated 5 stars by our customers on Trustpilot and have exceptional ratings on Feefo.
Could an IVA be right for you?
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To find out more about managing your money and getting free advice, visit Money Helper, an independent service set up to help people manage their money.