Debt consolidation means combining several debts into one monthly payment. There’s more than one way to do it, and each has risks. We explain how they work. We don’t arrange loans, and a debt management plan is the service we provide.
Acme Credit don’t lend money, arrange loans or recommend particular lenders. We can explain debt consolidation and discuss the options available to you.
Providing Debt Management Plans (DMPs) for suitable circumstances. A DMP allows you to make regular payments towards eligible unsecured debts through an agreed arrangement. Our DMP service has fees, which we’ll explain before you decide whether to proceed.
Acme Credit Consultants Ltd is authorised and regulated by the Financial Conduct Authority for debt counselling and debt adjusting (Firm Reference Number: 666760).
Depending on the option, a new loan or card pays off your old debts, or a debt management plan shares one payment between your creditors.
You pay once a month, instead of juggling several payments on different dates
Consolidation may lower your monthly payments or your interest, depending on the option and your circumstances. Always compare the total cost, not just the monthly payment.
It may be worth considering if:
It may not suit you if:
• Never pay an upfront fee to get a loan. Be wary of anyone who asks.
Most people use debt consolidation for unsecured debts (debts not backed by an asset), such as:
Company debts aren’t covered, and help with them isn’t regulated by the FCA.
Debt consolidation means combining several debts into one monthly payment, which can simplify your finances. You can do it through a new loan, a balance transfer card or a debt management plan.
No. Debt consolidation usually means taking out a new loan to pay off your existing debts. A debt management plan is an informal agreement with your creditors, run by an adviser, with no new borrowing. The right option depends on your circumstances.
It might, especially if the new arrangement has a lower interest rate than your current debts. But if you stretch repayments over a much longer period, you may pay more overall. We help you compare the true costs.
Usually you handle them separately. Unsecured debts are generally more straightforward to consolidate, while your options for secured debts depend on your assets and circumstances.
Applying for a consolidation loan involves a credit check, which may temporarily lower your score. If you keep up with repayments, your credit record can improve over time.
You may still have other options, such as a Debt Management Plan or an IVA. Our advisers review every option that could suit your situation.
The best way is to speak with one of our advisors. We will look at your total debt, income, credit profile, and long-term goals to recommend whether consolidation is suitable.
You can also read our detailed guide on is a debt consolidation loan a good idea for more on when it works and when it doesn’t.
No. Acme Credit is an advisory firm and does not lend money. We help you understand your options and, where suitable, set up a debt management plan or another solution.