Do You Need Debt Consolidation in the UK?

For some, consolidating multiple loans and repayments into a single monthly payment could be the best way to get out of debt in 2022.

Debt consolidation isn’t a new concept, but the longer we spend dealing with financial markets and global economies, the greater the array of solutions you have access to. Those who have become embroiled in debt know the fear of sleeping with one eye open. Debt has such a terrible impact on our mental health that it is a commonly cited cause of suicide. Debt is a killer, make no mistake. Debt consolidation is one way to tackle it without having to resort to extremes.

Here in the UK, there are some debt solutions that can see you back on your way to a normal life again. Here are some of our favourite debt consolidation solutions in GB.

The Best Debt Consolidation and Solutions in the UK

The key thing to remember when tackling debts is that you cannot bury your head in the sand. The longer you ignore it for, the worse it will be. Debt that piles up starts to multiply until it gets out of hand. When that happens, or even if you only have a little debt but still feel overwhelmed by it, you ca turn to some of the following debt consolidation solutions.

The HELOC

The HELOC, or Home Equity Line of Credit, has been a staple in US and Australian markets for years now, but it has only recently arrived in the UK. This type of debt consolidation plan is only available to those who own their own home. A HELOC from providers Selina Advance lets you borrow up to 80% of your home’s value, less the amount you still owe on the mortgage. If you have a £100k home with £20k left to pay, that means you can access as much as £60k of funding to pay off those debts. After that, you have one, easy to manage monthly repayment and you only pay interest on what you borrow.

The Debt Consolidation Loan

You can invest in yet another loan to complement the vast amount of borrowing you have already done. However, this time, the sum borrowed is used to pay off all your other debts, so that you only need to pay one monthly fee instead of trying to priorities who to pay every month. If you owe lots of little lump sums to lots of different businesses, this is a good way to consolidate your debts into one payment. Always check what the rates on interest are before you agree to a debt consolidation loan. However, they make your problem better, not worse.

Filing for Bankruptcy

Here in Britain you can file for bankruptcy if you meet certain requirements. Bankruptcy means that you are on a restricted credit score for a few years, and it will take a long time to get out of. Filing for bankruptcy should be a last resort for debt consolidation. Try other methods first before you rely on it.