UK Consolidation Loans

Don't lose your head when your bank wants a word

In the UK consolidation loans are often recommended by banks, usually after you've got into a bit of a financial mess and begged the bank manager to extend your overdraft. While such loans can make a positive difference to your finances, don't assume that your bank's package is the best.

In the UK consolidation loans are often recommended by your bank, usually after you've got into trouble and exceeded your overdraft limit one time too many. They can be a very good idea – by getting rid of expensive borrowing and reducing your overdraft, consolidation loans can help you get back on your feet – but don't assume that your bank is offering you the best APR. In many cases, it isn't.
In the UK consolidation loans are available from most mainstream lenders, and if you shop around you'll find that some lenders' APRs are much lower than others'. Rather than get into a mess and be talked into a consolidation loan by your bank, you can save a fortune by taking the initiative, shopping around and consolidating your debts into a single loan before you run into trouble. If you wait until your bank wants a word, you might find that your bank is the only lender willing to offer you a consolidation loan – and the APR on offer won't be particularly attractive.

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