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Debt Consolidation Loans for Bad Credit

Borrow from £5,000 up to £75,000.

Loan term length limits from 1 to 10 years.

Simple, clear application process to help you find the right way to manage your existing debt.

Regain control of your finances, and combine your debts into one loan with one monthly repayment.

A woman sitting on a bad credit score dial.

Poor Credit History? Not a Problem

At Consolidation Expert, we provide a complete range of debt consolidation loans, including consolidation loans for bad credit. Even if you have poor or bad credit, we may be able to help you get your finances back on track by matching you with a lender that could provide you with a debt consolidation loan for bad credit.

We strive to provide the best customer service, ensuring each of our customers gets the perfect loan for their situation. Even if you have a poor credit history, we may still be able to consider you for a loan.

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 loan that allows you to combine multiple debts into one affordable payment. With bad credit consolidation loans, you could take all of your existing unsecured debts such as credit cards, store cards, and more and roll them into a single monthly payment. This could make it easier to manage your finances, and you may be able to save money on interest with a lower overall rate, depending on your existing interest rates and the APR offered.

It’s important to note that a debt consolidation loan won’t erase the debt, but it could make it more manageable so you can pay it off over time.

A woman holding a credit card and a money bag.

How Much Can I Borrow?

With a bad credit debt consolidation loan from one the panel of lenders at Consolidation Expert, you can borrow anywhere between £5,000 and £75,000. This could be a great way to overcome practically any debt you’re struggling with, from credit card debts, store cards, and personal loans of all kinds.

How Does a Debt Consolidation Loan Work?

A debt consolidation loan allows you to combine multiple existing debts into a single loan, often with a lower interest rate and fixed monthly repayment. This makes it easier for borrowers to manage their finances, as they pay one affordable repayment instead of multiple payments each month.

At Consolidation Expert, we will assess your financial situation and one of our panel of lenders may be able to offer a debt consolidation loan to help regain control of your finances.

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The Difference Between Unsecured and Secured Debt Consolidation Loans:

Unsecured Debt Consolidation Loans

Unsecured debt consolidation loans do not require any form of collateral. This means you don’t have to put up any assets, like your home or car, to secure the loan. The lender offers the loan based primarily on your creditworthiness. If you default on the loan, the lender can’t automatically take your property, but they can take legal action to recover the money.

Pros:

  • No risk to your property or assets
  • Usually quicker to arrange as there's no need for property valuation

Cons:

  • Higher interest rates due to the increased risk to the lender
  • Smaller loan amounts and shorter repayment terms

Secured Debt Consolidation Loans

Secured debt consolidation loans require collateral, such as your home or car. If you fail to repay the loan, the lender has the right to seize the collateral to recover their losses.

Pros:

  • Lower interest rates due to the reduced risk to the lender
  • Larger loan amounts and longer repayment terms

Cons:

  • Risk to your property or assets if you fail to make repayments
  • Can take longer to arrange due to the need for property valuation

It’s important to carefully consider your financial situation and ability to repay before deciding between a secured or unsecured debt consolidation loan.

Why Should I Apply for Debt Consolidation with Bad Credit?

Debt consolidation can be a viable option for those with poor or bad credit scores. At Consolidation Expert, we pride ourselves on working with lenders that consider a wide range of scores. Simply fill out our quick application form and tell us a little about yourself. If you are approved by one of our lenders, the funds will be paid directly into your account or straight to your appropriate creditors.

With nothing to lose, get in touch today.

Expert opinion on the use of consolidation loans.

Financial Expert Andrew Hagger.

Debt consolidation loans can be a helpful solution for those with bad credit who are struggling to manage multiple debts. However, it’s important to note that obtaining a debt consolidation loan with bad credit may be more difficult and may come with higher interest rates than if you have good credit.

Before taking out a debt consolidation loan, it’s important to make sure that the APR and repayment terms you are offered are a better option for you in comparison to your current situation.

Overall, debt consolidation loans can be a helpful tool for managing debt, but it’s important to make sure you fully understand the terms and conditions of the loan and can afford the monthly repayments before proceeding.

— Andrew Hagger, at Consolidation Expert.

How Can a Debt Consolidation Loan Help Me?

Dealing with multiple creditors demanding payment can be very stressful and time-consuming. Debt consolidation offers an effective solution to address this issue. By consolidating all your debts into one loan you could streamline the payment process and eliminate the need to keep track of multiple accounts. This could simplify your finances, and could potentially reduce interest rates and monthly payments, ultimately leaving you in a better financial position in the short and long term.

What Debts Can I Resolve with a Consolidation Loan?

A debt consolidation loan could be used to address a variety of debts, such as credit card debt, student loans, payday loans, and more. This type of loan could be great for those who are struggling with high-interest rates and have difficulty managing their finances on a monthly basis.

Why Choose Consolidation Expert for a Debt Consolidation Loan for Bad Credit?

At Consolidation Expert, lending panel can provide a wide range of consolidation loans to suit people with poor or bad credit history. With the help of Consolidation Expert, even people with very poor credit history could still be able to consolidate debt and regain control of their finances.

If a debt consolidation loan for bad credit scores sounds right for you, apply online today! At Consolidation Expert, our lenders’ loan options could help you to take control of your finances and restore your credit rating.

An advisor saying Hello and a sign with the Consolidation Expert logo.

Frequently Asked Questions about Debt Consolidation Loans for Bad Credit

While you can use almost any personal loan for debt consolidation, loans specifically designed for debt consolidation may offer a better interest rate than more generic personal loans, or allow you to take out loans over a longer period.

In addition to debt consolidation loans, you can also use:

Secured Loans, including

  • Home Equity Loans,
  • Second Mortgage Loans,
  • Loans Taken Out Against Your Vehicle

Unsecured Loans:

  • Personal Loans,
  • Credit Cards,
  • Balance Transfer Cards

Any of these loans can be used to consolidate your debt. However, it’s extremely important that you make regular payments on these debts to ensure you don’t default, and end up in a worse financial state than before.

Yes, consolidating your debt can affect your existing credit score. Generally, a consolidation loan doesn’t negatively affect your credit score unless you miss payments or exceed the terms of the agreement. However, paying off your debts with a consolidation loan could improve your credit score if you’re making timely payments and are able to pay off all of your debts in full.

While obtaining a bad credit consolidation loan can provide an opportunity to improve your financial situation, it’s important to note that the application process will always involve a credit check. As such, it may have a temporary impact on your credit score. However, once you secure the loan and start making timely payments, you can use it to consolidate and pay off your existing debts, which could help improve your credit over time.

Yes, you will need to undergo a credit check in order to get a debt consolidation loan. This is because lenders will use your credit score as one of the factors when determining whether or not to approve your loan application. Even if you have bad credit, there are still lenders who specialise in serving borrowers with bad credit and may be willing to provide the funds you need.

An unsecured debt consolidation loan is a loan that does not require collateral. This means that the lender cannot seize your property or assets if you default on the loan.

Taking out a debt consolidation loan could initially hurt your credit score if the lender or broker makes a hard inquiry on your credit report. However, if you make timely payments on the new loan, it could help improve your credit score over time.

Yes, there are debt consolidation loans available for people with bad credit. However, these loans may come with higher interest rates and stricter eligibility requirements. It’s important to do your research and compare debt consolidation loans before you commit, particularly if you have a low credit score.

A guarantor loan is a loan where someone else, usually a family member or friend, agrees to take responsibility for the loan if you default. This can improve your chances of getting a loan if you have bad credit.

The best debt consolidation option for you will depend on your individual circumstances, including your credit score, existing debt, and financial goals. It’s important to compare loan offers and consider factors such as interest rates, fees, and repayment terms.

You can use a debt consolidation loan to pay off existing debt, such as credit cards, personal loans, or even private medical bills. This will consolidate your debt into one loan with a single monthly payment and, potentially, a lower interest rate.