What You Need to Know About Debt ConsolidationFor many people, debt consolidation is the best solution to obtain financial freedom. More information about this policy can be viewed here.
Let’s face it, debt can be a daunting prospect. From personal loans to high-interest credit card bills, when these start building up the pressure is almost indescribable. To make matters worse, those just managing to clear these expenses at the end of the month may suffer increased strain if their job or other situation changes.
Initially, one or two debts may not seem like the biggest thing. However, once multiple interest rates start piling up, the balances on the accounts sometimes don’t seem to decline. In this situation, when debts become unmanageable, a consolidation loan could be the best way to regain control.Apply Now
What is a debt consolidation loan?
A debt consolidation loan works by taking out a sum equal to, or greater than, the total of your combined debts. By paying all these off, you will only have the loan left to manage – and this can be repaid through one, affordable monthly payment.
What are the benefits of a debt consolidation loan?
There are several benefits to a debt consolidation loan. Here are the main ones you should know about:
Tired of creditors chasing you for money you don’t have? A consolidation loan can repay your existing lenders and allow you to make one affordable payment each month. This gives you much more control over your financial situation and makes it easier to manage.
Another benefit of debt consolidation is that by converting your payments into one affordable lump sum, you should be better off each month. We can help give a reasonable estimation of how much you could save. Potentially, you could put this towards a treat or bank it for a rainy day.
You’re less likely to miss payments
You probably have a lender which needs to be paid by this date, followed by another which must be paid here. Also, don’t forget about those credit card and store payments! It can be challenging keeping on top of all your creditors but – as you have just one payment to manage – you should find this task much easier.
Assist your credit score
A debt consolidation loan can also assist you in improving a credit score. By making payments on time and not missing deadlines, you can start to build a payment history which looks a lot more favourable to future lenders. Eventually, you should be able to access the better rates on financial products offered through some banks and mainstream lenders.
I have bad credit. Can I get a Debt Consolidation Loan?
At Consolidation Express, we consider all financial circumstances and credit scores. While some lenders won’t provide loans to those with bad credit, this doesn’t mean you won’t get the funds you seek through us.
Can I choose which debts I consolidate?
When you receive the funds from a consolidation loan, it’s entirely up to you what you do with it. However, we would recommend that you consolidate as many debts as possible.
Am I eligible for a consolidation loan?
We help thousands of people obtain the finance they need every year. From people looking to consolidate credit card debts to those seeking help with personal loans, we can assist you in finding the best solution possible.
To find out more, get in touch with our specialist team today. We should be able to quickly tell you whether you’re eligible for debt consolidation.Apply Now
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.