2 min read
The upside
Rolling several debts into one loan can lower your overall rate, cut admin, and give a single, predictable payment. It works best when you are replacing expensive short-term debt with cheaper, better-structured finance. See debt consolidation.
The trap to avoid
The trap is stretching the term so the monthly payment falls but the total interest rises. Consolidation should reduce the total cost or clearly improve manageability — not just move the problem. Judge it on total repayable.
What it means for you
Credicorp lends to your company, not to you personally, and takes no personal guarantee. See business loans or apply online.
Frequently asked questions
Does consolidating debt save money?
It can, if it replaces dearer debts with a cheaper one and does not simply stretch the term. Compare the total repayable before and after, including any fees.
What is the risk of consolidation?
Lowering the monthly payment by extending the term, which can raise the total interest. Consolidation should cut cost or clearly improve manageability, judged on the total.
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Read →Funding for UK limited companies
Credicorp lends to your company, not to you personally — short-term working capital with no personal guarantee. See what your business could access.