Government Debt Consolidation Loans – Do They Exist?
Look for government debt consolidation loans and you may be surprised at what you find. Here's what you need to know so you can make an informed choice.
If you’ve come to this page seeking government debt consolidation loans, we have some news for you – they don’t exist. Strangely, this is a myth which regularly comes up so we thought we’d take the opportunity to shut this down once and for all.
If looking for debt consolidation though, you’re in the right place. Click the button below and, if approved, you could have the money in less than 24 hours.
Get Debt HelpAre government debt consolidation loans available?
The government does not provide debt consolidation services. However, it’s understandable why people think so because some debt solutions have been introduced and legislated by our government. For example, under UK legislation, you may be able to:
- Get an IVA (Individual voluntary arrangement);
- Declare yourself bankrupt;
- Obtain a debt relief order;
- If you live in Scotland, you may also be eligible for the debt arrangement scheme or a trust deed.
Government debt consolidation loans are not on this list and it’s very unlikely politicians will change their position.
Are interest-free government debt consolidation loans not available either?
Government-related debt support is usually associated with free help or more support. With an IVA, for example, your interest rates and charges are frozen while you focus on clearing what you owe. If the government did consolidation loans, there would probably be a period where interest rates wouldn’t apply.
Although consolidation loans do come with interest, the rates are generally less than what you’d be paying usually with all your combined accounts. After all, one of the reasons why debt consolidation is so popular is it simplifies your financial situation – leaving you with one lender to repay, one interest rate to manage, and one payment date to keep.
What happens to companies advertising government debt consolidation?
Despite this product not existing, some companies still use phrases such as ‘government debt consolidation’ in their adverts and across their pages to mislead people – possibly in an effort to make themselves seem more authoritative than they actually are.
Regulators, such as the Financial Conduct Authority, have noticed and taken necessary steps against these organisations. Penalising those falsely advertising government debt consolidation, this at least means the misleading adverts will hopefully become less common.
If you do see a company saying their consolidation loans are endorsed by the government, we advise treating them with caution. Chances are, they are just trying to mislead you.
Debt is a very personal matter – you want a group to help you tackle it which at least has your best interests in mind.
Want a FREE consultation?
Government debt consolidation loans aren’t available – and they probably never will be. This doesn’t mean you won’t be eligible for a consolidation loan though. As money worries are probably at the forefront of your mind, we’d be happy to give you a free initial consultation on your financial situation.
If we believe debt consolidation would benefit you, we’ll strive to find the best deal possible. At no obligation to you, we’ll present all the facts so you can make an informed decision about resolving your debt.
Can I Get a Consolidation Loan?
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.
