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Welcome to Debt Consolidation Quote, a website that aims to help you understand about debt consolidation, the pros and cons of consolidating your existing debts, and other solutions that can be used instead of a debt consolidation loan or remortgage.
Pros of debt consolidation
- Can significantly lower your monthly payments, by taking advantage of lower interest rates and / or paying the debt back over a longer period of time
- Can give you one monthly payment instead of many, meaning you are less likely to stress over paying the bills or even worse, forget to pay one!
Cons of debt consolidation
- If you are not self-disciplined, you can end up getting into more debt after you’ve consolidated, eventually leading to unmanageable amounts of debt
- If you pay the loan back over a longer period of time to save on monthly repayments, you may pay more interest overall
Types of consolidation
There are two different types of debt consolidation loan, a secured loan, which is secured against your property, or an unsecured loan, which is not secured against your property.
Sometimes it is necessary to use a re-mortgage rather than a secured loan, this is no different in many ways to a secured loan, the only distinction being that a secured loan would normally be just for the amount of debts being consolidated, whereas a re-mortgage consolidation would involve borrowing the full amount of your existing mortgage, and then adding on the additional amount needed to consolidate your other outstanding debts.
Debt Consolidation Calculator
If you want to see how much interest you could save each month or how much you could lower your monthly repayments by, please use the online debt consolidation calculator.