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Debt Consolidation Loans

Consolidate Your Debt with a Personal Loan

Are you juggling multiple debts? Feeling overwhelmed by various repayment schedules, interest rates, and due dates? A debt consolidation loan could be the solution you need.

At Consolidation Expert, we specialise in helping individuals with bad credit to consolidate their debt into one loan with a manageable monthly repayment. By consolidating your debts, you could regain control of your finances, reduce your stress levels, and potentially save money on interest payments.

Whether you have credit card debts, store card balances, personal loans, or other types of unsecured debt, our lenders’ consolidation loans could help you streamline your repayments and manage your debt more effectively.

A woman holding a credit card and a money bag.

Representative 14.8% APR

We are a broker, not a lender.

Representative Example: Borrowing £15,000 over 60 months, repaying £355.28 per month, total repayable £21,316.57.

Total cost of credit £6,316.57.

Interest rate 14.8% (variable).

The lenders on our panel offer loans for 12-360 months, with rates from 4.7% APR to 42.6% APR.

The Representative Example is based on all loans paid out by lenders between 1st Jan 2022 and 31st Dec 2022.

What is a Debt Consolidation Loan?

A debt consolidation loan is a type of personal loan that allows you to combine all your existing debts into one. Instead of dealing with multiple lenders, you’ll only have one loan to manage. This means you only have one monthly repayment to worry about, making it easier to manage your finances and keep track of your debts.

Debt consolidation loans work by paying off your existing debts with the loan amount, leaving you with just the consolidation loan to repay. This may simplify your financial situation, especially if you’re currently dealing with several different repayment schedules. With a consolidation loan, you’ll have a clear picture of your debt, knowing exactly how much you owe and when your repayment is due each month.

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How Can a Debt Consolidation Loan Help?

Consolidating your debts into a single loan can have several benefits. It could simplify your repayments, potentially lower your interest rate, and could even improve your credit score over time. But how does this work in practice?

01. Simplify Your Repayments

One of the main advantages of a debt consolidation loan is that it can simplify how you pay back your loan. Instead of juggling multiple debts, each with its own repayment schedule and interest rate, you’ll only have one monthly repayment to make. This may make budgeting easier and reduce the risk of missed payments.

02. Potentially Lower Interest Rate

If the interest rate on your new loan is lower than the rates you’re currently paying on your existing debts, you could save money on interest. This isn’t always the case, as the interest rate you’re offered will depend on various factors, including your credit score. However, if you can secure a lower interest rate, it could reduce the overall cost of your debt while you repay your loan.

03. Potentially Improve Your Credit Score

By keeping up with your repayments on a debt consolidation loan, you may improve your credit score over time. This is because making regular, on-time repayments demonstrates to lenders that you’re a responsible borrower. However, it’s important to note that failing to keep up with your repayments can harm your credit score, so you should only take out a debt consolidation loan if you’re confident you can afford the repayments.

Who Can Apply for a Debt Consolidation Loan?

Even if you have bad credit, you may still be eligible for a debt consolidation loan. We work with lenders who offer consolidation loans for bad credit, helping you to regain control of your finances. We believe that everyone deserves a chance to manage their debts effectively, regardless of their credit history.

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Eligibility Criteria for a Debt Consolidation Loan

While the specific eligibility criteria can vary between lenders, there are some common requirements. You’ll typically need to be over 18, a UK resident, and have a regular income. Your credit score will also be considered, but having bad credit doesn’t necessarily mean you’ll be rejected. At Consolidation Expert, we understand that everyone’s situation is unique, and we assess each application on an individual basis.

Understanding Bad Credit

Having bad credit can make it more difficult to get approved for a loan, but it’s not impossible. Your credit score is just one factor that lenders consider when assessing your application. If you can demonstrate that you’re able to afford the repayments, you may still be approved for a debt consolidation loan.

At Consolidation Expert, our lending panel offer consolidation loans for bad credit, helping you to consolidate your debts and improve your financial situation.

How to Apply for a Debt Consolidation Loan

Applying for a debt consolidation loan with us is simple. Just follow these steps:

  1. Calculate how much you need to borrow to successful consolidate your debts.
  2. Check your credit score.
  3. Apply for a loan online.
A man walking towards a flag.

Preparing to Apply

Before you apply for a debt consolidation loan, it’s a good idea to check your credit score and review your financial situation. This can help you to understand your chances of approval and ensure that a debt consolidation loan is the right choice for you.

Completing Your Application

When you’re ready to apply, you can do so online. You’ll need to provide some basic information about yourself and your financial situation. This will include your income, employment status, and details of your existing debts. We’ll then assess your application and provide a decision as quickly as possible.

Contact Us

Our team of debt consolidation experts is always ready to help. We’re committed to helping you find the best solution for your debt problems.

FAQs About Debt Consolidation Loans

Debt consolidation loans work by allowing you to borrow a sum of money to pay off your existing debts. This means you only have one lender to repay, which can simplify your finances and potentially reduce the amount of interest you’re paying.

Essentially, you’ll be moving all your debt into one place. When you apply for a debt consolidation loan, the lender will assess your creditworthiness, which will include checking your credit score. If your application is approved, the lender will pay off your existing debts, effectively consolidating them into one new loan.

You’ll then repay this new loan in monthly instalments over a set period. The interest rate and loan term will depend on your personal circumstances, including your credit score and the amount you wish to borrow.

The type of loan you need to consolidate debt is a debt consolidation loan. This is a specific type of personal loan designed to pay off multiple debts. It can be used to consolidate various types of debt, including credit cards, overdrafts, and other loans. The main advantage of a debt consolidation loan is that it allows you to simplify your debt repayments by merging multiple debts into one loan.

This can make it easier to manage your debts and could potentially save you money if the interest rate on the consolidation loan is lower than the rates on your existing debts.

There could be several reasons why you can’t get a loan to consolidate debt. One of the most common reasons is a poor credit score. Lenders use your credit score to assess your creditworthiness and determine your ability to repay the loan. If your credit score is low, lenders may see you as a high-risk borrower and may be less likely to approve your application.

Other factors that could affect your ability to get a loan include your income, employment status, and the amount of debt you already have. If you’re struggling to get a debt consolidation loan, it may be worth seeking advice from a debt advice service or financial adviser.

To qualify for a debt consolidation loan, you typically need to have a good credit score and a stable income. Lenders look at your credit history, your current income and employment status, and your current level of debt when deciding whether to approve your application. However, there are also debt consolidation loans available for people with bad credit.

These loans often come with higher interest rates to reflect the increased risk to the lender. It’s important to carefully consider your personal circumstances and financial situation before deciding to apply for a debt consolidation loan.

While debt consolidation can offer several benefits, it’s not without its disadvantages. One potential disadvantage is that you could end up paying more in interest over the life of the loan.

This can happen if the interest rate on the consolidation loan is higher than the rates on your existing debts, or if the term of the consolidation loan is longer than your current repayment periods.

Another potential disadvantage is that it can lead to a temporary drop in your credit score, as lenders may carry out a hard credit check when assessing your application. However, if you manage your loan responsibly and make your repayments on time, a debt consolidation loan can help to improve your credit score over time.

Yes, once your debt consolidation loan is approved, the funds will typically be transferred directly into your bank account. You can then use these funds to pay off your existing debts. It’s important to remember that once the funds are in your account, it’s your responsibility to use them to repay your debts.

If you don’t use the funds to pay off your debts, you’ll still be responsible for making your existing debt repayments in addition to the repayments on your new debt consolidation loan.

Yes, when you apply for a debt consolidation loan, the lender should always carry out a credit check. This is to assess your creditworthiness and determine your ability to repay the loan. The credit check will look at your credit history, including any previous loans or credit cards, and any missed or late payments.

It’s worth noting that a credit check can temporarily affect your credit score, but if you manage your loan responsibly and make your repayments on time, a debt consolidation loan can actually help to improve your credit score over time.

The date of your first loan repayment will depend on the terms of your loan agreement. Typically, you’ll need to start making repayments one month after you receive the loan.

However, some lenders may offer a grace period or allow you to choose your repayment date. It’s important to check the terms of your loan agreement carefully to ensure you understand when your repayments are due.

There are several alternatives to a debt consolidation loan, including balance transfer credit cards, debt management plans, and debt settlement. Balance transfer credit cards allow you to transfer your existing debts onto a single card, often with a lower interest rate.

Debt management plans involve working with a debt advice service to manage your debts and negotiate repayments with your creditors. Debt settlement involves negotiating with your creditors to pay a lump sum that is less than the total amount you owe.

It’s important to consider all your options and seek professional advice before deciding on the best solution for your circumstances.

A secured debt consolidation loan is a type of loan that is secured against an asset, such as your home. This means that if you fail to repay the loan, the lender can take possession of the asset to recover the debt. Secured loans often offer lower interest rates than unsecured loans, as they present less risk to the lender. However, they also carry a higher risk for you, as you could lose your home if you fail to repay the loan.

An unsecured debt consolidation loan is a type of loan that is not secured against an asset. This means that if you fail to repay the loan, the lender cannot take possession of your assets. Instead, they may take other action to recover the debt, such as taking you to court or hiring a debt collection agency.

Unsecured debt consolidation loans are typically offered based on your creditworthiness, which includes factors such as your credit score, income, and employment status. While unsecured loans may carry higher interest rates than secured loans due to the increased risk to the lender, they do not directly put your assets at risk if you fail to repay the loan.

Both balance transfers and debt consolidation loans can be effective ways to manage and pay off debt, but the best option for you will depend on your personal circumstances. A balance transfer involves moving your debt from one or more credit cards to a new card, often with a lower interest rate. This can be a good option if you have high-interest credit card debt and can pay off the balance within the promotional period. However, balance transfers often come with fees, and the interest rate may increase significantly after the promotional period ends.

On the other hand, a debt consolidation loan allows you to pay off multiple debts with a single loan, often with a lower interest rate and a fixed repayment schedule. This can make it easier to manage your debts and could potentially save you money. However, you’ll need to have a good credit score to qualify for the best rates, and you’ll need to be disciplined about making your repayments to avoid getting into further debt.

Yes, it is possible to get a debt consolidation loan with bad credit, but it may be more difficult. Lenders will consider your credit score when assessing your application, and a low credit score can make you appear as a higher risk.

However, there are lenders who specialise in providing loans for people with bad credit. These lenders will often consider other factors, such as your income and employment status, in addition to your credit score. It’s important to be aware that loans for bad credit often come with higher interest rates to reflect the increased risk to the lender.

Yes, a guarantor loan can be used for debt consolidation. A guarantor loan is a type of loan where another person, usually a friend or family member, agrees to repay the loan if you can’t.

This can make it easier for people with bad credit to get a loan, as the lender has the reassurance that the loan will be repaid even if the borrower defaults. However, guarantor loans can carry risks for the guarantor, so it’s important that both you and your guarantor fully understand the terms of the loan before agreeing to it.

Yes, this is essentially what a debt consolidation loan allows you to do. By taking out a debt consolidation loan, you can use the funds to pay off your existing debts, effectively merging them into one loan. You’ll then make one monthly repayment to the lender, which can simplify your finances and potentially reduce the amount of interest you’re paying.

Yes, a debt consolidation loan can be used to pay off credit card debt. In fact, this is one of the most common uses of debt consolidation loans. By using a debt consolidation loan to pay off your credit card debt, you can potentially reduce the amount of interest you’re paying and simplify your repayments by having just one loan to manage.

Yes, many lenders and financial services offer loan calculators that allow you to estimate the cost of a loan without impacting your credit score. These calculators typically ask for information such as the amount you wish to borrow, the loan term, and the interest rate. They then use this information to calculate the total cost of the loan and the amount of your monthly repayments.

Some lenders also offer the option to carry out a ‘soft’ credit check, which can give you an indication of whether you’re likely to be approved for a loan without affecting your credit rating. However, it’s important to note that the actual cost of the loan may vary depending on your personal circumstances and the specific terms of the loan.

Applying for a debt consolidation loan can temporarily affect your credit score, as lenders will carry out a hard credit check when assessing your application. This can cause a small, temporary drop in your credit score.

However, if you manage your loan responsibly and make your repayments on time, a debt consolidation loan can actually help to improve your credit score over time. This is because regular, on-time repayments can demonstrate to lenders that you are a responsible borrower.

To get a loan for consolidating debt, you’ll need to apply to a lender who offers debt consolidation loans. This will typically involve filling out an application form where you provide information about your financial situation, including your income, employment status, and details of your existing debts.

The lender or broker will then carry out a credit check to assess your creditworthiness before making a decision on your application. If your application is approved, the will release funds to pay off your existing debts, effectively consolidating them into one new loan. You’ll then repay this new loan in monthly instalments over a set period.

Debt consolidation loans can potentially reduce the amount of interest you’re paying on your debts. This is because you may be able to secure a lower interest rate on your consolidation loan than the rates you’re currently paying on your existing debts.

However, the interest rate on a debt consolidation loan will depend on various factors, including your credit score, the amount you wish to borrow, and the loan term. It’s important to compare the interest rate on a potential consolidation loan with the rates on your existing debts to ensure that consolidating your debts will actually save you money.

As with any kind of financial obligation, there are potential downsides. For example, if you fail to make on-time payments, it could have a negative impact on your credit report.

Debt consolidation loans for bad credit may also come with high interest rates, meaning you may not save money over time, even if it makes your repayments easier to manage – however, this is completely dependent on the rate of interest that you’re offered.

Credit cards and loans often come with high interest rates, so it’s worth making sure that you choose the right debt solution for your situation.