What is debt consolidation?
Debt consolidation refers to combining multiple high-interest debts, such as outstanding credit card balances, personal loans, or store card credit into a single debt, leaving you with one monthly repayment to keep on top of.
What is a debt consolidation loan?
While many of us have debt, it can be harder to keep on top of what you owe when you have outstanding balances in lots of different places.
A debt consolidation loan is the process of merging debts into one loan, which may help simplify repayments into one single monthly repayment.
How do debt consolidation loans work?
Maybe you have outstanding credit card or store card balances, or perhaps you still need to pay off a loan you took out a while ago. Whatever the reason, with a debt consolidation loan you could gather your outstanding debts into a single personal loan with one monthly repayment.
By moving your debts from multiple places into one debt consolidation loan, you could also avoid paying the (potentially higher) interest rates on your other loans or credit card balances.
Benefits of a debt consolidation loan with M&S Bank
A personal loan from M&S Bank could help you manage your debts by keeping your total outstanding balance in one manageable place.
Use our personal loan calculator to help you work out what you could afford to borrow.
Is a debt consolidation loan the best option for me?
Taking out a loan to pay off debt is a big decision. Always check and consider your options carefully before you change your borrowing arrangements.
If you are using any part of the loan to pay off or reduce existing loan(s)/debts (including combining these into a single loan), it is important to consider not just the interest rate and monthly repayments, but also the term of this loan compared to the remaining term of your existing loans/debts.
Spreading your payments over a longer term means you could end up paying more overall than under your existing arrangements, even if the interest rate on the new loan is less than the rates you are currently paying. You should also consider if any early repayment charges apply and if this form of borrowing is appropriate for your circumstances.
Already have a personal loan with M&S Bank? Manage your existing M&S Loan.