When debt consolidation can’t help
These days, you’re unlikely to be approved for a debt consolidation loan if you have a bad credit score due to things like late and missed payments or County Court Judgments (CCJs). These will affect your credit record - the information lenders look at when deciding whether to approve a loan - making it difficult to obtain further credit. If you have been turned down for credit and continued to apply to other lenders, this could also affect your score.
If you’ve been turned down for a debt consolidation loan in the past you may need to rethink the sort of debt solution that’s appropriate for your circumstances. A debt expert can discuss your situation so that they can find the solution that’s right for you, taking your current income and monthly expenditure into account and the amount you can afford to repay towards your unsecured debt each month.
If you have a good credit track record a debt consolidation loan may be the most suitable solution. It could lower your monthly repayments and give you more time to repay your unsecured debts by combining them into one new agreement. You’d only have a single payment to make each month and only one lender to deal with. However, although you may be able to find a consolidation loan with a lower interest rate than your current unsecured debts, remember that the more you increase the length of time you're repaying the outstanding debt the more you'll end up paying overall.
However, you may be surprised to discover that other debt solutions can offer lower affordable monthly payments without the need to borrow more - if you can't keep up with your payments as they stand - and could reduce or freeze interest and charges on what you owe. For more information, go to http://www.debtadvicenow.co.uk/debt-consolidation/ and see what the site has to tell you.