With any loan, it's important to be aware of the full picture before making a decision. Here are some key things to be aware of if you're considering a debt consolidation loan:
• The interest rate on the loan you are offered may be higher than the interest charges on your current debts, so it's important to check this
• Make sure you are aware of any additional costs, such as early repayment fees on existing loans
• Depending on the types of debt you have, your overall monthly repayment might also increase if you consolidate a debt where you previously only paid interest (for example, on an overdraft). This is because you’ll now be paying off the original amount of the overdraft instead of just interest