Consider a debt consolidation loan as a strategic remedy if you aim to streamline payments for debts owed to various creditors. By securing a loan to settle your current debts, you’ll consolidate them into a single repayment to one lender, simplifying your financial management. Explore additional details about the benefits of a debt consolidation loan here.
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.
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.
How does a debt consolidation loan function?
Opting for a debt consolidation loan that encompasses all your outstanding debts ideally means consolidating your repayments into a single monthly instalment to one creditor. This centralisation simplifies your financial obligations, potentially alleviating the stress of dealing with multiple lenders. Additionally, the loan may contribute to lowering your monthly payment amount.
Nevertheless, prior to applying, it’s crucial to understand the differences between various loan types in order to choose the most suitable option.
In this scenario, a loan is tied to an asset, typically your home. Securing the loan with your property increases the likelihood of approval. However, it’s important to note that falling behind on payments poses a potential risk of losing your home.
An unsecured loan doesn’t require you to provide your home or any other asset as collateral. However, it’s worth noting that unsecured loans may come with higher interest rates compared to secured loans.
What debts can be consolidated?
Debt consolidation loans encompass a diverse range of expenses. For instance:
Please Note: This list is not comprehensive. If you have concerns about a specific type of debt not mentioned here, please reach out to us. There’s a possibility that we can offer assistance.
To determine if a consolidation loan is a suitable option for you, consider the following criteria:
Whether or not a debt consolidation loan is the right decision depends entirely on your situation. If the following applies to you then this solution may not be the best choice:
Rest assured, we take all credit scores into account.
If you have a poor credit history, certain companies may decline your application for a debt consolidation loan. We collaborate with a network of lenders who assess customers in various circumstances.
Nevertheless, to secure the most favorable interest rates on your loan, a good credit score is typically required. Consequently, you might face higher interest rates compared to other customers.
Although debt consolidation has several advantages, it does have some negatives. For example:
If you determine that this is the suitable choice for you, the application process for the loan is straightforward.
Specify the desired loan amount and provide personal details in our application. In total, this process should not exceed five minutes. Once completed, our advisors will handle the necessary steps and contact you shortly with your available options.
Upon loan approval, allocate the funds among your current creditors, closing those accounts. Subsequently, you will be left with only one creditor to whom you will make monthly repayments.
Rest assured, the repayment terms should be significantly more favorable than your current arrangement. After settling your consolidation loan, you'll have successfully eliminated your debts, marking the beginning of a new chapter in your life.
At DebtConsolidation.com, we aim to assist in any way possible. Regardless of your credit history, rest assured that your application will be treated with the respect it deserves at DebtConsolidation.com. After conducting standard affordability checks, if we determine that a loan is the optimal solution for you, we will make every effort to secure approval. The only way to know for sure is to apply, so let’s get the ball rolling!
Exploring debt consolidation loans for individuals with poor credit can be a positive step toward enhancing your credit report. Numerous lending options cater to those with bad credit, aiding in the effort to boost their creditworthiness for future credit opportunities. However, it’s crucial to acknowledge that initially, your credit rating may experience a dip due to the acquisition of a new line of credit. Over time, consistent and timely payments should contribute to an improvement in your credit score.
As you embark on this journey, keep a close eye on your credit score, especially 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’re offered. In some instances, you might encounter higher interest rates, impacting your overall repayment amount. Stay vigilant to secure the most beneficial terms for your debt consolidation.
Numerous alternatives exist to a debt consolidation loan, so if you’re uncertain, there’s no need to worry. Upon application, an advisor will assess your situation and may recommend an alternative solution that better aligns with your specific needs.
Government debt consolidation loans are not a reality. Some debt management companies use terms like ‘government debt consolidation’ or ‘government debt advice,’ creating the impression that such loans have official government approval. However, this is never the case, and regulatory bodies like the Financial Conduct Authority are actively working to curb this misleading behavior.
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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.
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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.
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