Debt Consolidation Loans

  • ☰ HOME
  • ☊ APPLY ONLINE NOW
  • ? DEBT FAQs
  • ✍ OTHER SOLUTIONS
    • IVA Individual Voluntary Arrangements
    • Debt Relief Order DROs
    • Debt Arrangement Schemes
    • Scottish Trust Deeds
    • Bankruptcy
    • Business Debt Consolidation
  • ✔ ABOUT US
  • ☎ CONTACT US

Types of Debt that Qualify for Debt Consolidation

19/04/2012 by Brian Talbot



consolidation types photoFrom priority to non-priority, secured to unsecured, there are many types of debt. While some types can be included in debt consolidation or debt management programs, others cannot. The best debt management solution is based on the amount and type of debt the consumer has.

Therefore, consumers should organize their debt into categories before deciding how to consolidate it. Using this approach enables consumers to repay the money as quickly as possible.

A mortgage, secured loan, student loan, rent, utility bills, child support and maintenance payments, business rates, court fines, and council and other taxes are considered priority debts. These items usually cannot be included in debt consolidation.

However, they represent the most urgent repayments so they cannot be ignored. Consumers must find a way to repay past-due balances for these items while addressing other debts.

Credit cards, store cards, bank loans, overdrafts, catalogue repayments, and home-collected credit are non-priority debts. These usually can be included in a debt consolidation program. A debt consolidation loan is the most popular way to consolidate debt.

A single loan is taken to repay qualifying unsecured debts, leaving the debtor with only the consolidation loan to repay. Debt repayment becomes less expensive because the loan features a lower interest rate than the rate associated with each existing debt.



When a consolidation loan is used, the debtor deals only with one lender and makes one monthly payment. The payment may be lower because the loan usually extends repayment over a longer period to make it more affordable.

Debtors who use a consolidation loan know when they will be finished repaying their debt and as long as they make payments on time, they will begin improving their credit rating.

The goal of a debt consolidation loan is not to reduce the amount of debt repaid but to make it more convenient and less expensive to repay the money. Consumers who have a lot of debt or a bad credit rating may only qualify for a secured loan. In this case, the home guarantees the loan, reducing the lender risk.

Consumers should consult with a debt management professional before agreeing to this arrangement because defaulting on the loan could put the home at risk.

While loan payments are being made, the individual will need to keep making payments on debts that are not covered. This makes it important not to financially overextend oneself with the monthly loan payment.

Consequences of defaulting on a debt consolidation loan include late charges, additional interest, negative credit impact, and collection actions.

It may also become more difficult to qualify for other debt management solutions.

People who are falling behind with paying bills should get free debt management advice before the problem worsens.

Our experts will review your financial situation and suggest ways to eliminate debt. If a debt consolidation loan is included in our recommendations, we will help you find a lender that offers a low interest loan and affordable repayment terms.

Once you have consolidated your debts, you will be on your way to becoming debt-free.



Filed Under: Debt Consolidation

Our Panel Of Lenders Include:

Free Debt Report Download

Download your full guide to the solutions available.

Download guide

Popular Content

  • Debt advice in Manchester phone numbers and contact details
  • Why Should I Document Contact With Debt Collection Agencies?
  • Advantages And Disadvantages Of Scottish Trust Deeds
  • How Do I File a Credit Dispute?
  • Resources for Dealing with Personal Finances
  • Our Best Money Saving Tips For Skincare And Beauty Products
  • What Happens If My Spouse Dies In Debt?
  • Can I Remove a CCJ from My Credit Report?
  • What Is the Minimum I Have to Pay to a Debt Collection Agency?
  • Should I Borrow from My Retirement Funds to Pay off My Debt?
  • Saving Money By Changing Habits
  • Bankruptcy In The UK And How It Works
  • Save Money On Reputable Legal Advice
  • Saving Money On Pet Care- Simple Ideas That Make A Difference
  • What is a CAB or Citizens Advice Bureau?
  • 5 Benefits Of Debt Consolidation Loans
  • Debt advice in Birmingham phone numbers and contacts
  • Payday Loan Rates Out Of Control
  • Debt consolidation calculator choosing a debt consolidation loans calculator
  • Best Ways to Consolidate Bad Debt and Pay It Off?
  • How Do I Clear My Name from My Partner’s Debt?
  • Should I Liquidate Assets to Pay Off Debt?
  • What Can I Do If a Debt Collection Agency is Hassling Me?
  • Who Is Responsible for Debt When a Spouse or Family Member Dies?
  • Money Saving Gone Awry
  • How Long Does It Take To Re-establish Credit After Bankruptcy?
  • Can A Debt Collection Agency Take Me To Court?
  • I Am Moving from the UK, What Happens to My Debt?
  • What Are the Best Low Interest Credit Cards for Someone with Bad Credit?
  • What Happens When I Marry Someone in Debt?
  • Advantages And Disadvantages Of A Debt Arrangement Scheme
  • Easy Ways To Manage Credit Card Spending
  • Is It Safe to Use a Debt Management Company?
  • How Do I Consolidate My Student Loans?
  • Debt consolidation help for those considering a consolidation loan
  • Does the Government Offer Debt Consolidation Loans for Low Income Residents?
  • Save Money On Holiday Entertaining
  • How Can I Get My Debt Back Under Control?
  • I Thought I Had a Good Credit Score, But I Was Still Turned Down for a Loan
  • How Will a Debt Relief Order Affect My Ability to Get Future Credit?
  • Money Savers That Most People Forget
  • My Gambling Debts Are Bankrupting Me, What Can I Do?
  • Saving Loved Ones From Paying Inheritance Tax
  • How Long Will My Debt Relief Order Affect My Ability to Get a Cell Phone Contract?
  • Will An Overdraft Count On My Credit Report If I Do Not Pay It Off?
  • How Will a Debt Consolidation Loan Help Me Get Out of Debt Quicker?
  • Overdrafts, Personal Loans, And Debt Management Plans
  • Top Ways To Save Money Fast
  • Can My Ex Sue Me for Debt Owed on Cosigned or Joint Accounts?
  • If My Spouse Is In Debt and Unable To Get a Lower Interest Credit Card, Can I Transfer That Debt to My Card?
  • What Is the Best Way to Improve Credit Rating
  • Invest To Earn For Yourself And Others
  • Secured debt consolidation and secured debt consolidation loans
  • Learn How to Get Out of Debt
  • Shocking Debt Statistics And Benefits Of Debt Consolidation Loans
  • Getting More Food On A Limited Budget
  • Debt advice in Milton Keynes numbers and contacts
  • Who Should I Get to Cosign a Debt Consolidation Loan?
  • Can I Get a Bank Loan if I am In Debt and Missing Payments?
  • Top Ways To Cut Your Hair Care Costs
  • Debt consolidation counseling for UK consumers help
  • Enjoying New Years Eve 2017 On A Limited Budget
  • How Can I Check My Credit Report?
  • How Can I Stop Debt Collectors Contacting Me About My Ex?
  • Best debt consolidation loans and how to find one
  • What Happens When Someone Dies in Debt, but Has Left Money in Trust?
  • Saving Money When Using Public Transport
  • Saving For A Childs Education
  • Is It Possible to Get a Mortgage with No Savings?
  • What Is an IVA?
  • Ways To Avoid The Savings Crisis
  • Will a Business Plan Help Me Get a Business Loan if I Have Bad Debt?
  • Save Money on Groceries
  • Savings Tips For Those Who Wait And See
  • Save Money While Battling a Cold
  • My Bankruptcy Was Approved, But I Am Still Being Hassled By Creditors
  • Do Laundry The Money-Saving Way
  • Budget Travel Tips For Christmas Holidays
  • What Benefits Are There to Debt Consolidation?
  • What Type of Credit Cards Can I Get After Bankruptcy?
| Terms & Conditions | Privacy Policy | Site Map | XML Site Map | For Homeowners With Bad Credit|

COPYRIGHT © 2011 – 2021 Money Marvel


This website is provided as an independent marketing website. We are neither a lender or an independent financial adviser and as such are unable to offer financial advice. Enquiries generated via this site are passed on to independent financial advisers and loans brokers. Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.

Money Marvel, 4 Camino Condesa, Fuengirola, 29640, Spain
The server time is 03:48:18am