A debt consolidation loan can simplify your finances by combining several payments into one and may reduce your monthly repayments or interest rate. However, a lower monthly payment could mean repaying the debt for longer, potentially increasing the total cost, and fees or a higher rate could outweigh the benefits. Missing repayments may damage your credit record, and using your home as security can put it at risk if you cannot pay. Compare the total amount repayable and check the lender is FCA-authorised; free debt advice may be helpful before applying.