Debt consolidation is simply, merging of several unsecured debts (loans) into a single loan with a single monthly repayment. After debt consolidation your monthly repayments should be lower as well as your interest rate. Also, your debt will be much easier to manage.

Paid defaults, unpaid defaults, bad credit rating and arrears are all common occurrence associated with debt.

Regardless of your credit rating we can find a solution for your financial situation. Simple debt consolidation is most effective for people with clean credit rating, however there are several solution for your debt problems.

Below is an example of debt consolidation:

Before debt consolidation there are 4 different loans each month. Type of loan Remaining to pay Interest rate Monthly repayments Credit Card 1 $17,000 17.0% $422 Credit Card 2 $9,000 16.5% $221 Credit Card 3 $6,000 14.0% $140 Personal Loan $15,000 19.0% $389 TOTAL $47,000  -- $1172 After debt consolidation monthly payments are reduced from $1172 to $1034. Saving $138 each month. Type of loan Remaining to pay Interest rate Monthly repayments Personal Loan $47,000 11.5% $1034 Savings per month $138     (Every month extra $138 in the pocket.)