If your situation is similar to the one described above, it is the right time to think about a debt consolidation loan. The advantages are many:

1. You would have a single lender to deal with.
2. The cumulative rate of interest that you were paying off to these multiple sources will be significantly reduced.
3. You would have the peace of mind to concentrate on better things than monthly bills.
4. You would not slip on one of the repayments only to find that the next month you are repaying a penalty and also you have spoiled your credit history due to one bill that slipped off your mind.
5. If you plan well and pay off the consolidated loan well, your credit rating will significantly improve – the rates of interest that you will pay the next time will be significantly lower.

This is thus beyond discussion that psychologically and financially, such a deal makes a great sense. What remains to be looked into is the nitty-gritties of the whole affair and how to bargain for the best rates. This becomes even more important since with multiple players in the market today, if you do not shop around well and do not do enough research before going ahead with the first option you have, you are likely to miss on many good options. People make this mistake mostly because unsecured loans till a very few years ago were very difficult to find. Today, with the focus of the people shifting to business and employment and such factors becoming more important than the property one owns, these things have start to ensure the lenders of the security of their investment.

So, the rates that you would be paying would depend on a couple of things – your credit history, your financial health and your current employment. If these things are able to convince the lender well, it should be easy to find good consolidation loans. These loans are available at rates ranging between 10%-14% when these are unsecured – which is most likely the case. These are available in healthy conditions to the tune of £10,000 - £70,000 depending on the requirement and depending on how convincing the case is.

It is important for you to explore the reputation of the lender and the time period in which the lender promises to make the money available for you. Also, you must be well aware of the terms and conditions you are signing the dotted line on. The repayment plan and the penalty for prepayment should be according to what you have planned and must not be the default ones so that you later find yourself in an uneasy financial situation.

Considering all the factors in detail, it is always worthwhile to go for a debt consolidation loan if you are bugged with the many loans and bills. In case you go for one, it is very important to get to know all options and compare them well since the options are many in number today. Also, it is important to plan your finances and repayments well since this one can make or break your complete credit history as a borrower. But in all probabilities, it would work out well for you and a consolidated loan would be a good and sensible answer to your financial worries.