6th February 2019
Whether it’s a credit card, store card or personal loan, there are a lot of people who have a number of debts that need repaying each month. If you’re finding it hard to juggle a range of repayments, then a debt consolidation loan could be for you. Debt consolidation loans are designed to make managing your finances easier and simpler. Here’s all you need to know.
How does a debt consolidation loan work?
A debt consolidation loan is a way to combine your separate debts into one monthly repayment. It makes managing your debts simple and easy, and also helps you to keep track of your general monthly outgoings.
The majority of debt consolidation loans are unsecured, meaning they are lent to you based on your creditworthiness. However, some can be secured against an asset, the most common being a house. If you do opt for a secured debt consolidation loan, you need to consider that the bank, building society or lender could seize your asset from you if you fail to make repayments.
Pros and cons of debt consolidation loans
Find out more or apply for an Asda Personal Loan here. For more financial hints and tips read our other Asda Money Personal Loans guides.
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