Debt consolidation loans

Debt consolidation loans are incredibly useful and can be a significant step towards fixing financial problems. 

Whether you're after a secured, unsecured or business debt consolidation loan the process is more or less the same and like most financial products, there are better and worse deals. Here are a few tips towards finding top debt consolidation loans.

Start by doing your homework. Review all of the debt you have and add it all together to come up with a figure of how much you're going to need to borrow in a debt consolidation loan.  Also work out how much you're paying in interest each month, this is equally important.

That might sound like obvious advice, but you'd be surprised at the amount of people who start shopping for debt consolidation loans before they know how much they actually need. This can be a costly error. After all, the offers you see advertised have a 'typical apr' meaning the interest you pay will not be the exact figure you're shown. It will be worked out by how much you borrow and the state of your credit record.  So there's no point in looking for a debt consolidation loan until you know all the facts.

Once you've done all the relevant calculations you're ready to see what kind of debt consolidation loans are on the market. A good way to start is by using a price comparison site. Enter your details and see what kind of offers come up. Use this knowledge as a reference point. 

You can also head into your bank for impartial debt consolidation loan advice. They can tell you whether they think a consolidation loan is a good idea and what alternatives they might be able to offer you. It's often overlooked but your bank can actually be the best source of financial help you can find. As their customer, they have a duty to help you repair your debt.

Once you've seeked out impartial debt consolidation loan advice and compared the various deals on the market, you're only then ready to take the next steps.

Draw up a shortlist of two or three debt consolidation loan deals and do further research into them. Ask about what rates are available to you and get a detailed quote from each of the providers. Make sure there are no hidden fees like early repayments charges or any other nasty surprises. Also see if any of the deals have perks, like 'repayment holidays' and interest offers. These things can be of tremendous help and make all the difference.

We've got lots more information on debt consolidation loans and can also divert you to a range of other useful services.