Before entering into any debt consolidation package, all other possible alternatives should be considered with the lender & eliminated before entering into the new arrangement.

One aspect which many people forget is that once an unsecured loan is consolidated against a property the whole loan then becomes secured & usually will take longer to repay. As a result of this new home equity release there would now be even more emphasis on ensuring monthly repayment as the debt secured on the home is now much larger. Nevertheless, should a good debt consolidation be negotiated then the new outgoing could be considerably less.

Here we consider various scenario’s & age groups in this situation...

Ok, so I left university about two years ago, and I've been struggling with my unsecured debts ever since.

Every month I dread having to make my repayments because I'm scared that I'll have spent too much on other things and I won't be able to afford them. I have to make four separate payments each month, all different amounts to different creditors - and it's really starting to get me down.

My friends have all been really supportive, and offered me help when I've needed it the most. They even suggested that I should look into something called debt consolidation - so I did.

After reading about debt consolidation (which I will explain now), I have decided that it could be right for me.

Debt consolidation would involve me taking out a new loan big enough to repay all my existing debts and get credit card debt relief. This loan would replace all my old unsecured debts and leave me with just one debt to repay - which means I would only have one payment to make each month instead of four.

Not only will I have three fewer payments to make each month, but the debt consolidation loan's interest rate is actually considerably lower than the rate on some of my current unsecured debts - so I would save money in interest.

I have thought long and hard about whether I should take out a debt consolidation loan, and I have decided that I really should do. It should improve my financial situation considerably and help me repay my debts in an affordable manner. Not only that, but I should be a lot less stressed, which means I should be able to get on with my life without worrying about my finances all the time.