The main benefits of a debt consolidation loan

If you're currently dealing with multiple loans from different loan providers then consolidating this debt can be a good option. A debt consolidation loan allows you to combine your debts to provide you with one monthly repayment.
A man looks at bills and a calculator as he considers a debt consolidation loan

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If you’re currently dealing with multiple loans from different loan providers then consolidating this debt can be a good option. A debt consolidation loan allows you to combine all your existing debts to provide you with one monthly repayment. This loan is used to pay off your individual loans, leaving you with one large loan instead. Consolidation loans are usually ideal for people who have multiple repayments to make on different credit cards, loans and overdrafts.

Here are some of the main reasons why taking out a debt consolidation loan can be a good idea and some of the things you should be wary of:

One monthly payment

It’s likely that your current payments are required on different days each month. This can be difficult to manage and often quite stressful. By consolidating your debt you can streamline everything into one single source and make just one payment each month. Having one payment can make managing your loans much easier. One fixed monthly payment can also help you to more easily budget for other things.

Lower interest rate

Using a debt consolidation loan can also help you to save money on interest. This is especially the case if you have several credit cards with high interest rates. If the rate of borrowing on a consolidation loan is lower than your original debt then you could reduce the amount of interest you pay on a monthly basis.

Improve your credit score

If you’ve fallen behind on any of your existing loan repayments then it’s likely your credit score has suffered. Taking out a consolidation loan can help to improve your credit score. This is because it gives you an opportunity to demonstrate that you’re a responsible borrower.

Things you should be aware of:

Even though a consolidation loan may save you money on a monthly basis, depending on the rate and term, you could be increasing the total amount you pay back and the duration of the repayments.

Another thing you should avoid doing is borrowing more than you need to. A debt consolidation loan should be a tool to consolidate your debt, rather than create more.

 

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👉 Discover more about us at www.oakmortgages.co.uk or see what our happy clients are saying on Google Reviews.

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Zin Ameur
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Exceptional service from Vicki & the Oak Mortgages team, who were integral to ensuring I secured a competitive remortgage deal and took away the time burden in doing so, would highly recommend.
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Major Tom
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Unexpectedly had to source a small mortgage to complete a house purchase. We contacted Oak Mortgages to explain we were under prepared to start mortgage applications but they put in alot of leg work and employed the full use of their team to source the best value, conditions and terms that fit our situation. Contact was prompt and informative, with all questions answered and investigated with patience and clarity. The team were very empathetic and took on a level of customer care I didn't expect from a mortgage broker. Whether it was over the phone or by email, all information was presented and explained in the best way for us to make an informed decision on what we were buying and agreeing to. The team continue to provide that care even after mortgage offer is accepted and purchases are complete, and I look forward to speaking to them again in the future as they monitor mortgage rates and endeavour to advise what are the best options available going forward.
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Alex
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⭐⭐⭐⭐⭐ Absolutely fantastic service from start to finish. They’re the only mortgage brokers I use, and for good reason. The level of service, professionalism and dedication is second to none. Nothing is ever too much trouble, communication is excellent, and they’re always on hand to answer questions, explain the process and find the best possible solutions, even when things aren’t straightforward. With multiple property investments, it’s important to have someone knowledgeable, reliable and proactive in your corner, and that’s exactly what you get. I wouldn’t hesitate to recommend them to anyone looking for a mortgage, remortgage or property investment finance. They’ll certainly continue to be my go-to as I grow my property portfolio. Highly recommended!
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sunday ifenkwe
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They were very very professional and always willing and ready to respond to all my queries, guided me through this process simlessly. I am happy I used their services. I will also like to give a special appreciation to Vicki Redley she was very great and an amazing individual as she guided me all through the process.
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Ifenkwe Grace
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Well so far the experience with you guys has been pretty great
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Hannah Vivian
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Recently had Abby as our broker, who was super friendly and made the process smooth and easy. Thank you
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Stephen Dowding
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My experience of Oak Mortgages has been unfailingly amazing. Abby is WONDERFUL at her job: super-kind, expert and patient and a huge credit to the company.
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G S
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From the very first contact through (what was a complex and hugely frustrating conveyancing process), to the day of completion, Oak Mortgages were the shining light that got us through. Sarah and her team were brilliant. They were responsive, caring, empathetic, knowledgeable, professional, and human at each and every stage. We are so grateful that we used Sarah and Oak Mortgages and highly recommend them to anyone wanting to guarantee that authentic, trustworthy approach from professionals who care. A top class act - 5 ⭐️⭐️⭐️⭐️⭐️
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DOBO and the Foodies
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Awesome service, helped me at every step on a journey I never thought at 50 I could make! Sarah is amazing available whenever I needed her highly recommend
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Caoimhe Clarke
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Thank you to Abby and the admin team at Oak Mortgages who have been fantastic in helping me secure a remortgage on my property. From my first phone call to Abby I was filled with confidence and the experience with the team was brilliant, especially when other companies involved were not so brilliant the Oak Mortgage team pulled out all the stops to make sure completion happened. I would highly recommend this company and will use their services in the future. Thank you again.
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