Byrom & Keeley

Debt Consolidation

Loans and credit



What Debt Consolidation means for you

Taking on further debt rarely improves your overall financial situation, and generally you cannot borrow your way out of debt. Unless you address the underlying reason as to why you find yourself with significant debt i.e. you have spent more than you have earned, then taking out a consolidation loan may only mask the problem. Always remember, that reduced monthly payments do not mean reduced debt.

The Byrom & Keeley best advice model will determine if a loan is right for you, and if it is, Byrom & Keeley will refer you to a professional finance company.

There are 3 categories of loan, and we will advise which type of loan is the most appropriate for you:

  • Consolidation Loan
  • Re-mortgage
  • Secured Loan
Reduced monthly payments will make the debt more affordable, but the long term cost of the borrowing could be significantly higher.

Consolidation loan

A consolidation loan should pay off all your existing unsecured debts, (credit cards, personal loans, store cards & bank overdrafts), and if it can reduce your monthly outgoings, it can help to relieve debt problems.

Effectively, a consolidation loan amalgamates all your unsecured debts and secures them on your property or into another unsecured loan. This should not be taken lightly, because you have significantly increased your risk. If you default on a secured loan, your home is at risk. Therefore, always seek expert financial advice and ensure that the loan is affordable.

Re-mortgage

Sometimes the answer to an unsecured debt problem is a re-mortgage.

Despite recent reductions in house prices and the reduced availability in re-mortgage deals available, house prices have risen dramatically compared to 10 years ago, and if you have owned your property for around 3-4 years or more, the opportunity to release equity at lower rates of interest to repay very expensive credit and store card debt and reduce monthly payments can be highly attractive.

However, you need to take into account the future trend of interest rates to ensure that your ongoing repayments are affordable.

You should always take expert advice and consider the risks of securing unsecured debt on your home. As well as putting your home at further risk, your debts are now repayable over the term of your new mortgage.

Secured loan

We will potentially advise that a Secured Loan may be more suitable than a re-mortgage when:

  • A large re-mortgage redemption penalty charge will be incurred
  • To suit your short term debt problem you need a short term loan
  • You have an immediate need and cannot wait for a re-mortgage
Always seek professional and expert advice, remembering the following:
  • Interest rates can be high
  • Beware of high set up fees
Your initial consultation is obligation free. There will be a fee for our service typically £1000. YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY DEBT SECURED ON IT. The information contained within this website is subject to the UK regulatory regime and is therefore primarily targeted at consumers based in the UK.

Call Byrom & Keeley TODAY and let us help you:
 New enquiries: FREEPHONE - 0800 298 2988
Existing customers: FREEPHONE - 0800 848 8484
Creditor line: FREEPHONE - 08000 435437