Loan interest rates will vary between product types. Rates will be lower if you have a secured Debt Consolidation loan as this would be secured to the equity on your home making it less risky. Unsecured loans tend to have higher interest rates as they are more risky for the lender.

Debt Consolidation will help you to budget your monthly payments as you will know exactly how much the payments will be each month. This in turn will free up some additional income each month which would have normally been spent on other debt repayments.

People who have poor credit ratings may be able to arrange a Debt Consolidation loan. Lenders willing to take a higher risk will however charge higher interest rates to compensate them for that additional risk. There is also a positive side for the borrower if they keep to all of the agreed payments on time a Debt Consolidation loan will leave a positive mark on their credit file.

If you are a home owner it may be worth contacting your mortgage provider to see if you can release some of the equity in your home. Mortgage interest rates are generally lower than Debt Consolidation loan interest rates.