Credit Card Debt Consolidation

Loan providers

Different loan providers offer very different kinds of loan packages. As with credit cards, it is important to consider the interest rates offered, and importantly, the length of the loan.

The APR on credit cards is higher than personal loans, which themselves are likely to have higher interest rates than mortgages. However, credit cards offer unsecured debt, which means that should you default on your repayments, the greatest factor affected will be your credit score.

On the other side of the scale, mortgage lenders can offer the lowest interest rates because the loan is secured; should you default on your mortgage, your home is at risk of repossession. The middle ground between these two extremes are personal loans, with products that provide both secured and unsecured debt.

Credit cards may charge the highest interest rates, but as well as providing an unsecured debt facility, they are the most flexible of borrowing products - you can repay the loan in full at any time. With personal loans and mortgages, the product may offer you very attractive annual percentage rates, however if the loan term is for a long period (mortgages may be 25+ years and personal loans are typically repaid over a number of years), this low interest continues to accrue over time. This means that the low interest rate loan may actually lead to a greater level of total interest over the loan period.

If you are looking at was of consolidation your debts then have a look at our sister site Fiscus Loans. In here you will find information on debt consolidation, secured and unsecured loans even loans for people with bad credit.

Fiscus Mortgages provide detailed information on remortgages and an in-depth look at the various UK mortgage products available on the market.