Debt consolidation is the replacement of multiple loans with a single loan, often with a lower monthly payment and a longer repayment period. Debt consolidation is the umbrella term for a number of ways in which you can consolidate your debts. The most common ways of doing this are with a debt consolidation loan, debt consolidation mortgage and debt management.
The advantages of debt consolidation are that in the short term your outgoings are reduced and you will deal with one creditor as opposed to many. The main drawbacks are that you will probably end up paying more money in total, and if you use your home or another assess for security, it could be at risk if you do not keep up repayments.
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Debt Consolidation Explained contains general information only. We strongly advise you to seek qualified professional advice before taking any action.