Consolidating your debts into one monthly payment secured on your home enable you to reduce your monthly outgoings, and consolidate your debt into one large payment as opposed to a number of them.
There are three main types of debt consolidation mortgage:
Borrowing secured against your home puts it at increased risk as you may face repossession if you fail to keep up with the repayments. Although your spending will be reduced in the short term, you will end up paying more interest overall. Many loan providers add on payment protection insurance which is often overpriced - shop around for the best deal.
Before committing to a debt consolidation mortgage always seek expert financial advice and ensure that the loan is affordable.
Debt Consolidation Explained contains general information only. We strongly advise you to seek qualified professional advice before taking any action.