With a debt consolidation loan it is possible to pay off your existing debts and transfer the monies owed into one loan with one manageable, monthly repayment. You will still have to pay back all the monies owed, but with a debt consolidation loan you may be able to reduce your monthly outgoings, pay a lower rate of interest, or be able to spread the costs out over a longer time period.

To see if you are eligible for their debt consolidation loan, a lender will normally look at how much debt you have outstanding and your credit risk.

Debt consolidation loans can be either secured or unsecured. A secured loan uses something of significant value to secure the loan amount. The most common source of security for such a loan is your home. Secured loans are less risky for the lender, usually leading to a lower interest rate and larger amounts available for borrowing.

In either case, secured or unsecured, the debt consolidation loans available to you will depend on your credit rating. Those people with poor credit can still access debt consolidation loans, however, and over time can even improve their credit rating by diligently making payments on time and in full.

The easiest way to find a good debt consolidation loan is to compare the loans available on the Seek4finance.co.uk's loans comparison service. Our service is free and we provide an impartial and independent comparison of the UK's personal and secured loans to help you compare loans more easily.

Compare over 400 unsecured personal loans and over 150 homeowner loans.