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Can a Debt Consolidation Loan Get My Finances on Track?

If you’re struggling to make ends meet, a debt consolidation loan could help you regain financial control. To find out more, get in touch with us today.
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Figuring out how to pay multiple debts can be exhausting. From the daily expenses to repaying loans, this can get even worse when trying to ensure you have enough funds by the end of the month.

If you are in this situation and need a solution for managing your finances, then it might be time to consider debt consolidation.

How does debt consolidation work?

Once a debt consolidation loan has been approved, you’ll be able to pay off your existing debts while making only one monthly payment. This can be a great solution as it provides some much-needed financial structure.

The first step, traditionally, is to find out what your credit score is. You can do this through a service such as Experian. If your credit score is rated as good, then the chances of your loan being approved increase. However, this isn’t to say that a bad rating will completely bar you from debt consolidation. Here, all scores are considered.

How does it make my finances more manageable?

Making sure multiple lenders get paid on time can be a challenge to say the least. By taking all these accounts, settling them, and then just focusing on repaying the loan, you could make budgeting so much easier.

Debt consolidation pros and cons

An image of a piece of paper with the headings Pros and Cons.

It’s worth noting that debt consolidation is not the same as many debt solutions out there. Although funds will not be written off, it can be a great option if you want the feeling of settling accounts in-full on your terms.

As well as making finances much easier to manage, debt consolidation has the following benefits:

  • By paying off your accounts, you stop calls and chasers from your existing creditors;
  • You may end up paying less interest on your loan than from all your current accounts;
  • Ultimately, by making the payments on the loan, your credit score should improve.

Generally, there is only one disadvantage when it comes to debt consolidation. Potentially, you may end up paying more in interest – and across a longer period – than you would otherwise have done. The good news is, during the application stage, we’ll strive to make sure this doesn’t happen. Alternatively, we might identify a solution which could be better for your needs.

Finally, as this is a loan, you may be at risk of legal action if you fail to make the monthly repayments.

A money bag next to pile of coins and a clock.

Find out more about debt consolidation here

Over the years, we’ve helped thousands of people consolidate their debts. As a result, we’ve heard every story and listened to every situation. If you want us to help you, then get in touch.

If your loan is approved, you could have the money you need in about two hours!

Apply Now
An advisor pointing to a screen displaying Rep APR.

APRs from 5.8% to 89.9%

We are a broker, not a lender.

Unsecured Loan Representative 69.9% APR

Borrowing £7,500 over 36 months, repaying £502 per month, total repayable £18,083. Total cost of credit £10,583. Interest rate 69.9% (variable). The lenders on our panel offer loans for 12-60 months, with rates from 5.8% APR to 89.9% APR. The Representative Example is based on all loans paid out by lenders between 19th Apr 2022 and 23rd Dec 2022.

Secured Representative 11.7% APR

If you choose to add fees to the loan: Assumed borrowing of £25,000 over 120 months, plus a broker fee of £2,500 and a lender fee of £250 would result in monthly repayments of £345.55, the borrowing rate is 8.6% (variable), the APRC is 11.7% (variable), total charge for credit £16,466.00 and the total amount payable £41,466.00. You can opt to pay the lender and/or broker fees upfront, your adviser will discuss these options with you.

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 debt secured on it. All rates vary subject to loan amount, loan type and status. Repaying your debt over a longer period of time may increase the amount you pay.

Further reading

What are the Different Kinds of Unsecured Loans?

Understand what an unsecured loan is, and how best to use the different kinds of unsecured loans in 2023.

What are the Different Types of Secured Loans?

With so many different types of loans available, it can be difficult to know which is right for you. For more information on secured loans, read this expert article.

Persistent Debt – What Does it Mean for Your Credit?

Persistent debt can affect your credit rating for a significant time period. Read to find out more.