First, you may be able to get a lower interest rate on your consolidation loan than you were paying on your various other debts.
In the vast majority of such cases lenders will now try and get borrowers round a table to discuss the situation.
However minor arrears due to a one off event can be dealt with directly with your lender usually without the need to refinance.
Long term problems on the other hand may require a complete financial overhaul.
‘Consolidation’ – if you check the dictionary means ‘the act of combining into an integral whole’. Debt consolidation is the act of combining multiple loans into individual, integral loan.
Debt consolidation mortgage not only consolidates your various loans it also consolidates various benefits under one singular name. There are many things integrated under debt consolidation. That certainly does not mean that your debt is paid off.