Consolidating internet loans

For example, let's say you owe £10,000 which you consolidate into a loan at 6% APR (that's the annual percentage rate), with repayments lasting for five years.

Your monthly repayments would be £193.33, meaning you'd pay total interest of just under £1,600.

If you use Gocompare.com's soft search loans tool you'll then only see the deals that you're likely to qualify for, giving you a better idea of the actual rates available to you and helping you make the right application.

Because debt consolidation tends to involve significant sums, the products are often (but certainly not always) what's known as secured loans.

You should think very carefully before consolidating personal loans and other unsecured debt into a secured loan.

While the repayment rates are likely to be more attractive you must always remember that your home or other asset is at a greater risk of repossession.

With most borrowing the longer you take to repay the more interest you'll pay, although for some people reducing their repayments is worth it.

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