What is a debt consolidation loan?

Debt consolidation is a way to combine some or all of your debts into one single monthly payment.
It means you could make one payment per month, rather than several. This can make it easier to keep track of all your payments.
With Shawbrook, this involves you taking out an unsecured loan which you use to pay off existing debts.
However, the terms may be different, and the overall cost could increase so read the terms carefully before entering into an agreement.

Other types of debt consolidation include a second charge mortgage or a balance transfer. A balance transfer refers to moving debt from one account or credit card to another.
For more information, visit our ultimate guide to debt consolidation.

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