Am I eligible for a debt consolidation loan?

Debt consolidation loans are designed for those who are struggling with multiple unsecured debts and multiple creditors.

Unsecured debts that are ideal to be consolidated using a debt consolidation loan include credit cards, store cards, loans and Hire Purchase (HP) agreements.

You may be eligible for a debt consolidation loan even if you have:

−    Past CCJs/defaults
−    Mortgage or rent arrears
−    Poor credit history
−    Have been declared bankrupt in the past

Debt consolidation doesn't require you to be a homeowner or even if you are a homeowner, you won't be required to borrow against your property if you don't want to. However, as with other types of loans, an unsecured debt consolidation loan will often have a higher interest rate than that of a secured consolidation loan.