Do you need a debt consolidation loan?

If you are in financial difficulties due to debt or have built up a variety of debts over time, a debt consolidation loan may be for you. But before you take that route, you should consider all the options. However you got into debt - unexpected financial difficulties, illness, loss of providing member of the family or overspending - you can turn to several organizations and charities for advice. These include the Citizen's Advice Bureaux, the Consumer Credit Counselling service, the Community Legal Service (England and Wales) or call the National Debtline on 0808 808 4000. Remember debt consolidation is one option and you should not feel pressured into taking it. These organizations can help you consider the alternatives. Your own lenders can also be surprisingly sympathetic about restructuring repayments. Talk to them as well. Having said that, many borrowers can benefit from consolidating their debts on better interest rate terms. Some credit cards cost up to 17.9 % (e.g. MBNA) and store cards can cost more. Consolidating your debt could cut interest payments by up to two thirds. It may be more convenient to make one payment rather than several. Or you can improve your cash flow in the short term by reducing monthly outgoings. But this may cost you more over time because you are paying the debt off over a longer period of time. Be careful if you are borrowing larger sums of money (over