With UK personal debt breaking through the 1 Trillion mark last year, its safe to say a large number of the UK population is in debt. This comes in the form of outstanding car finance, bank overdrafts, credit card bills and many other factors. More and more people are turning to loans to group all their debt and reduce the amount being paid out every month. But with the UK loans market booming and new brokers popping up every day, its hard to tell which will help or which will simply be a hindrance.

Gone are the days when you waited patiently and saved vigorously for that new car, wedding, holiday until you could buy it outright. The immoral phrase buy now, pay later is a motto for millions. Yet while in some instances this can help, the majority leave you dealing with debt. Many can handle it, but many cant. And the loan brokers have cottoned on!

Grouping all your debt together with one loan, reducing your monthly payouts seems like a great idea. Attractive plans such as pay nothing for five months and a free DVD player with every application softens the blow further. But whilst the benefits are clearly and loudly stated, the problems that could arise are not.

You can be penalized for paying back early. Once youve referred your debt to a loan, in most instances, you have to pay back the set amount per month agreed, for the entirety of your loan durations. A few brokers allow early payment, but these are few and far between.

You risk losing your home. If youve secured your loan on your house and do not pay it back, theres a strong chance you could lose your house. Even if youve not secured the loan on your house, the courts have the power to get the money back somehow and that can often mean your humble abode.

These are some things you should always check when taking a loan out. Remember it pays to shop around and it most certainly pays to do some checks on the broker you are doing business with. Are they well known? Are they established? Where did you find them? Follow these guidelines and youll be a step closer to finding a good debt-grouping loan. But the bottom line is, when it comes to taking out a loan, research, research, and research!