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Consolidation Loans for Accounts in Arrears

If you have accounts in arrears, a consolidation loan could be just what you need. Learn just how we can help resolve your arrears here.
A man thinking of calendars and missed payments.

Once you start missing payments on your loans, your account will move into arrears. When this happens, regaining control can be difficult. Potentially, your account may move deeper into arrears while you try to resolve the issue.

This can be stressful – and that is a huge understatement. Fortunately, a consolidation loan could help you get back on top of your finances. Here’s how you could be paying off your arrears within 24 hours:

Get a Consolidation Loan

What are arrears?

When you miss a payment on a debt, this sum is referred to as arrears. When a lender communicates that your account is in arrears, they will either do this by specifying the amount owed or detailing the number of months you missed.

Most people miss the occasional loan payment and – assuming this is resolved quickly – your credit rating is unlikely to be harmed and you shouldn’t be penalised by your creditors.

However, if your account stays in arrears (usually by two months or more), you may start seeing repercussions.

What if I don’t pay my arrears?

If your account falls into arrears, your lender will usually inform you of the missed payment as well as what must be done to rectify the situation. If you don’t manage to repay your arrears, the next step will depend on the creditor and your situation.

However, generally speaking, the lender will attempt to reclaim what’s owed through debt collection. Although it’s also possible for the firm to initiate legal proceedings or petition to make you bankrupt.

Accounts falling into serious arrears can have a severe impact on your credit rating as well – and these breaches could remain on your credit report for six years from the date of the first missed payment. This may make it very difficult for you to obtain financial products in the future.

How can a consolidation loan help?

When you’re struggling to repay accounts – and you simply don’t have the money spare – the task can seem an impossible one. However, using a consolidation loan, you can get the funds needed to repay your lenders and close accounts – including those in arrears.

My credit rating is bad, can you still help?

Once you start missing payments, your credit rating will probably start to deteriorate. When this occurs, you will find it harder and harder to obtain loans at favourable interest rates. Once you have a bad credit rating, it can sometimes feel like the financial world is closed to you.

At Consolidation Express, every credit score is considered – good or bad. Fundamentally, we know you’re trying to regain control of your finances and we’ll help you as best we can to achieve that. To find out more information regarding how we can support people with poor credit ratings, click the button below.

Debt Consolidation for Bad Credit
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Pay your arrears today

Click the button below and you’ll be taken to our short application form – which can be completed in just a few minutes. It will help us determine whether you qualify for a debt consolidation loan. If approved, you could have the money within just a few hours. Potentially, you could have repaid your arrears by the end of the day:

Do I Qualify?
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.