Through a debt consolidation loan, you can combine multiple debts into one manageable monthly payment. This efficiently settles your debts with various lenders, simplifying your financial management by requiring repayment to just one company.
We are firm believers that your financial history shouldn’t hinder your application. So, even if you have bad or poor credit, we are willing to consider your application for a loan.
With debt consolidation, you secure a loan amount equal to, or greater than the total value of your current debts. These funds are utilised to settle your existing creditors, consolidating your debts into one monthly payment instead of multiple.
This shift centralises your debt with one lender, resulting in a single interest rate, a solitary monthly payment, and only one account to oversee. The primary allure of a debt consolidation loan often lies in improved management – regaining control and enhancing your financial situation to simplify your life.
Focus on only one monthly payment.
No problem. We consider all credit scores – even bad ones!
We are experts in debt solutions.
No hidden upfront fees to worry about.
Real rates tailored just for you.
Focus on only one monthly payment.
No problem. We consider all credit scores – even bad ones!
We are experts in debt solutions.
No hidden upfront fees to worry about.
Real rates tailored just for you.
What is the maximum loan amount available?
Through a debt consolidation loan, you have the flexibility to borrow any amount within the range of £5,000 to £75,000.
APRs from 5.8% to 89.9%
When borrowing £7,500 over 36 months with monthly repayments of £502, the total repayment amount is £18,083. This includes a total cost of credit of £10,583, at a variable interest rate of 69.9%. The lenders in our network provide loan terms ranging from 12 to 60 months, with APRs varying from 5.8% to 89.9%. Please note that the Representative Example is based on loans disbursed by lenders from April 19, 2022, to December 23, 2022.
Opting to include fees in the loan: For a £25,000 loan over 120 months, along with a £2,500 broker fee and a £250 lender fee, your monthly repayments would be £345.55. The variable borrowing rate is 8.6%, resulting in an 11.7% APRC. Total cost for credit is £16,466.00, and the total amount repayable is £41,466.00. You can also choose to pay the lender and/or broker fees upfront, with options discussed by your advisor.
Debt consolidation loans function by enabling you to borrow a sum sufficient to settle multiple loans, streamlining your repayments to just one lender and a single monthly installment.
Upon applying for debt consolidation, our advisors assess the suitability of this solution for your circumstances. If you have a reliable income for loan repayments and are a UK resident, you may qualify. The decision then involves choosing between a secured or unsecured loan.
An unsecured debt consolidation loan is the type of loan you’re probably most familiar with. It is not secured against an asset so you won’t risk losing your possessions, but it could have a higher interest rate.
A secured debt consolidation loan is the type of loan you’re probably a little less familiar with. It is secured against an asset which is used as collateral, and can reduce your interest rate, depending on the asset value.
Even with a poor or bad credit history, debt consolidation remains a viable option for you. We consider all credit scores, and there’s no harm in reaching out. Simply complete our brief application form, provide some details about yourself, and you could have the necessary funds deposited directly into your account.
If you find yourself dealing with multiple creditors demanding payments, you’re likely familiar with the stress it can cause. Managing these payments and ensuring each one is made on time can be not only time-consuming but at times, seemingly impossible.
Enter debt consolidation. Rather than juggling payments to various creditors, you can settle them all at once, potentially freeing yourself from the ongoing concerns associated with these firms. Additionally, a debt consolidation loan can improve your financial situation both in the long run and on a monthly basis. Consider the example below:
Example debts | Total owed | Monthly payments |
|---|---|---|
Personal loans | £20,000 | £867 |
Credit cards | £7,412 | £245 |
Payday loans | £252 | £23 |
Store cards | £289 | £26 |
Total | £27,953 | £1,161 |
Example debt consolidation loan | Total owed | Monthly payments at 12.9% APR for three years |
£28,000 | £932 – that’s more than £200 extra in your bank account per month! |
In essence, a debt consolidation loan helps you by allowing you to:
It is worth noting however, that debt consolidation loans do also come with a downside which can include:
Consolidation loans, similar to any type of personal loan, will have an impact on your credit score. However, if you consistently meet your monthly payments:
you should see an improvement in your credit score, in the long run.
You’ll always be required to have a hard credit check when submitting a loan application, even if it’s a debt consolidation loan. However, consolidation loan companies will be understanding if you have a bad credit history. Most people look into debt consolidation loans because they’re missing their current monthly payments, which means they’re likely to have a bad credit score.
So don’t be put off by a company checking your credit report, they’re just being a responsible lender, and are still likely to consider you.
However, our online application won’t hurt your credit score.
With a debt consolidation loan, generally speaking, all unsecured debts can be consolidated. This includes:
Having a poor credit history might make the financial landscape seem unwelcoming, but with a debt consolidation loan, you can initiate repayments to your creditors while taking positive strides to enhance your credit score. Even individuals with very poor credit can find assistance through a debt consolidation loan.
Whether your credit is unfavorable or not, we are committed to aiding you in your quest for debt consolidation loans, irrespective of your credit history. Our goal is always to secure the best possible deal for you.
Acquiring a debt consolidation loan with poor credit can serve as a beneficial method for enhancing your credit report. Numerous lenders specialising in loans for bad credit are accessible to assist individuals in bolstering their creditworthiness, thereby improving their prospects for future credit. It’s worth noting, however, that initially, your credit rating may experience a decline as you take on a new line of credit. Nevertheless, consistent and punctual payments should contribute to eventual improvements in your credit score. Additionally, as your credit utilisation ratio decreases and the number of creditors diminishes, positive changes in your credit rating are likely.
Monitoring your credit score is crucial when seeking the most cost-effective debt consolidation loan available to you. Your credit score plays a pivotal role in determining the interest rates you’ll be offered. In certain instances, a higher interest rate may be proposed for your debt consolidation loan, potentially increasing your overall repayment amount.
We acknowledge that if you have a track record of poor credit, applying for a debt consolidation loan may be a source of anxiety. It’s important to recognise that, as part of the application process for debt consolidation, your credit score will eventually undergo evaluation.
At debtconsolidation.com, all credit ratings are taken into consideration, including poor credit scores. While it’s not possible to obtain a debt consolidation loan without a credit check, having a less-than-ideal credit history may not necessarily lead to a rejection of your application. In fact, there is nothing to lose by applying for a debt consolidation loan.
As a broker, not a lender, the cost of the loan is contingent on your provider. However, our commitment is to ensure you receive a fair deal and that debt consolidation is the most suitable option for you. Therefore, we will provide transparency regarding the associated costs.
There is no restriction on the number of debts you can consolidate into one loan. However, it’s important to note that only unsecured loans can be consolidated. This means that debts such as a mortgage cannot be consolidated.
It’s not obligatory to pay off all your debts with a consolidation loan. Certain loans, such as secured loans like mortgages or car loans, may not be included. However, it is advisable to include all your existing debts if possible. Doing so helps streamline your monthly payments to creditors and, in turn, reduces your overall monthly expenditures.
Debt consolidation loans without any fees are not a reality. Every consolidation loan provider will impose some form of interest or charges on the loan.
No guarantor is necessary, but you can opt for one if you prefer.
While some loan providers may require a guarantor, especially if you have bad credit, it is not mandatory with us. If you prefer not to have a guarantor, we will still work to find you a debt consolidation solution without one. However, if you desire the additional security of a guarantor with your consolidation loan, that is also an option.
Regardless of your choice, our goal is to secure the best debt consolidation offers for you. Further details on our guarantor policy can be found here.
Although life would be easier if this was a straightforward question, it unfortunately isn’t. As there is no universal rating system in the UK, it’s a little difficult to answer what a bad credit rating really is. For example, credit agencies Experian and Equifax both use different criteria to assess a person’s history.
In the case of Experian, the firm rates credit scores out of 999. Anything between 0 and 720 is generally regarded as being ‘poor’ or ‘very poor’. Equifax, on the other hand, rates scores out of 700 and will detail ratings under 379 as being poor or lower.
Therefore, to assess whether you have a bad credit score, you should contact one of these organisations and see what rating they give you. If you fall into one of the above categories, then this number may prevent you from obtaining certain financial products or low interest rates.
APR, or annual percentage rate, is the official term used to clarify the interest rate and the overall cost of borrowing. Before offering a financial product, all lenders are required to disclose their APR. In our situation, the lenders we collaborate with provide loans ranging from 12 to 120 months, featuring rates spanning from 5.8% to 89.9%.
The specifics of your repayments will be outlined in the policy documents furnished by your consolidation loan provider. If you are unable to locate these documents, kindly reach out to the organisation for assistance.
You may receive the required funds within 24 hours. However, the precise timeline is contingent on your consolidation loan provider.
Upon obtaining the necessary funds, you utilise the money to settle accounts with your creditors individually.
Ready to get started?
You can visit the Money Helper website to find out more about managing your money and to get free advice, they are an independent service set up to help people manage their money
Your details might be used for a soft credit check, which you can see but lenders cannot. This will not impact your credit score. The lender will perform a credit check which will appear on your credit file.
DebtConsolidation.co.uk is a registered trading name of Dissolve Debt Limited, which is authorised and regulated by the Financial Conduct Authority and is entered on the financial services register under reference number: 662423. Dissolve Debt Limited is registered in England and Wales (Company Number 05278758), registered office; Paul House Stockport Road, Timperley, Altrincham, Cheshire, England, WA15 7UQ. Registered with the Information Commissioners Office, (Registration Number Z896984X).
Disclaimer
The Financial Ombudsman Service (FOS) is an agency for arbitrating on unresolved complaints between regulated firms and their clients. Full details on the FOS can be found on its website at www.financial-ombudsman.org.uk.
“Dissolve Debt Limited” act as a broker processing the information that you provide to us and pass this on to our Limited group of third party lenders and brokers.
We do not charge a borrowers fee for the use of our brokerage services, however we do receive commission from lenders (or other brokers) when borrowers sign into a credit agreement following an introduction through the Debt Consolidation website.
Telephone calls from UK land-lines are usually free, however charges vary from mobile phones so please check with your network provider. Calls will be recorded for training and monitoring purposes.
As operator of this website, Debt Consolidation is not an agent or representative of consumers or any lenders and therefore does not endorse the services offered by specific lenders.
The guidance and/or advice contained within the website is subject to UK regulatory regime and is therefore primarily targeted at customers in the UK. For more information on how we handle your data see our privacy policy (for further details about Debt Consolidation and Dissolve Debt Limited, see our Terms and Conditions).”
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.
If you are thinking of consolidating existing borrowing, you should be aware that you may be extending the terms of the debt and increasing the total amount you repay.
All rights reserved © 2024 Dissolve Debt Ltd | Privacy Policy | Made by Pixelmate
