Settling accounts through consolidation

Collect current balances

Request a dated settlement figure from each creditor, including its expiry date and payment instructions. A statement balance may differ from the amount needed to close an agreement on a particular day.

Confirm who makes the transfers

Ask the new provider whether it pays creditors directly or advances money to you. Check account numbers and references independently. Do not assume accounts are settled because the consolidation application was approved.

Keep a record for every account

Record the amount, payment date, reference and creditor confirmation. Ask for a paid-up letter where appropriate. Continue following existing agreements until a creditor confirms a change; discuss overlapping payment dates in advance.

Compare the whole outcome

Add the cost of the new agreement and any remaining old balances. A single payment date is convenient, but the total cost comparison determines whether the new arrangement helps.