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Debt Consolidation Loan

A debt consolidation loan is best used to manage your debt with a single lender and the process is very much similar to getting a mortgage. Therefore, instead of selling your property to pay off any debt, you can consider a debt consolidation mortgage instead.

Why Use Truffle For Your Debt Consolidation Loan?

If you are in debt and are considering selling your property to repay them and purchase a cheaper property, you may want to consider a debt consolidation mortgage with Truffle.

The most common reason for homeowners deciding to get a debt consolidation loan is to lower their monthly payments and clear their debt. This then makes managing their money far easier because you’ll only need to deal with a single lender.

The process of taking out a debt consolidation loan with Truffle is similar to a mortgage. However, the main difference is that we focus on how much equity you have in your property. Therefore, if you’ve paid off a lot of the mortgage, you may be able to borrow much more than you think with a debt consolidation loan.

At Truffle, we are experts when it comes to debt consolidation and we are on hand to discuss all your options. Regardless to how much you want to borrow, we can discuss the best type of debt consolidation for you.

Debt Consolidation Loan

What Are The Benefits?

  • You’ll only have a single payment each month instead of multiple debts to different lenders
  • As debt consolidation loans are longer term, it often works out as better value because you’ll be paying a lower rate of interest
  • There is a set date of when you’ll finish paying off the debt
  • It’s far easier to manage as you are dealing with a single lender

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The Experts

What Can I Use A Debt Consolidation Loan For?

The benefits of a debt consolidation loan when you are in debt are very good.

For example, if you are repaying multiple lenders different amounts, it can make managing your debt difficult. However, by taking out a debt consolidation loan, you’ll only have to pay back one lender which makes managing your debt much simpler.

The other main benefit of taking out a debt consolidation loan is that your monthly payments will typically be much lower as you can pay off the debt consolidation loan over a longer term (up to 30 years depending on your age and personal circumstances). The interest rate that you are currently paying on your debt is likely to be a lot higher than the interest you will be paying on a debt consolidation loan.

We highly recommend discussing your debt with one of our advisors so we can help you decide whether a debt consolidation loan is best for you. You could make a debt consolidation loan more expensive if you do not consider early repayment charges and fees that are associated with taking out a larger amount of credit.

What Is The Maximum Amount I Can Borrow For A Debt Consolidation Loan?

The minimum amount you could borrow for a debt consolidation loan is £10,000, and there is no maximum amount. The amount you can borrow for debt consolidation is subject to your personal circumstances, equity, income and more. We recommend you call our expert advisors at Truffle Specialist Finance to discuss how much you could potentially lend for a debt consolidation loan.

Are There Any Risks?

Debt consolidation isn’t always the right solution for everyone. You should think carefully before securing debts on your property and ensure you understand the difference between unsecured and secured debts. By securing debts against your property, you increase the risk that your home may be repossessed if you fail to maintain repayments of your loan. Therefore, please be aware that consolidating existing credit may result in you extending the repayment term of your debt and could increase the total amount you repay.