Government advise research before consolidation

If you've been thinking about a debt consolidation loan, the government are advising that you should consider other options that might be available to you first.

They note that although consolidating debts can be a great way to reduce your arrears, there are more beneficial methods that can save you even more money. 

In the government report on consolidating debts it's recommended you try the following three things first:

  • Try to make new arrangements with your existing lenders.
  • Check you're making the best use of credit options you've already got - such as an overdraft facility, credit or store cards, a personal loan or extension to your mortgage.
  • Borrow from friends and relatives.