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Unsecured Debt Consolidation Loans

Borrow from £5,000 up to £75,000.

Varying loan term lengths of up to 360 months.

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

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

A woman sitting on a money bag and holding an open padlock.

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 are Unsecured Loans?

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Unsecured loans are a type of personal loan that doesn’t require any collateral. This means that the lender can’t automatically take your property if you fail to repay the loan. However, your credit score plays a significant role in determining your eligibility for an unsecured debt consolidation loan.

Unsecured loans offer a degree of flexibility that can be appealing to many borrowers. Because these loans are unsecured, you don’t have to worry about putting up your home or car as collateral. This can be a significant advantage if you don’t own any substantial assets, or if you’re uncomfortable with the idea of risking your property. However, because the lender is taking on more risk with an unsecured loan, you may face higher interest rates than you would with a secured loan.

There are benefits to both secured and unsecured loans. Each type of loan can affect your credit score – however, so long as you stay on top of your repayments and use the loan to clear all your existing unsecured debts, you can expect to improve your credit rating and start to regain control of your finances. With one loan and one monthly repayment, you can easily manage your debts by consolidating anything from car loans to personal loans, payday loans, and more.

Here at Consolidation Expert, our panel of lenders can provide a wide range of consolidation loans to suit your needs – including unsecured debt consolidation loans. If you’re wondering whether an unsecured debt consolidation loan is right for you, don’t hesitate to get in touch today.

How to Consolidate Your Debt with Unsecured Debt Consolidation Loans

To consolidate your debt via an unsecured consolidation loan, you'll first need to apply for a loan with a lender. The lender will look at your credit score, income, and other factors to determine whether you're eligible for the loan. If you're approved, you can use the loan to pay off your existing debt, leaving you with just one loan and one monthly payment to make.

Steps to Consolidate Your Debt

01. Preparation

The first step to consolidating your debt is to gather as much information as possible about your existing debts. This includes the amount you owe, the interest rate, and the monthly payment for each debt.

02. Research

You’ll need to research potential lenders and compare their loan terms, interest rates, and fees. Should you choose to apply for a loan with a Broker, like us, this part will be done for you!

03. Apply

Once you’ve chosen a lender, you can apply for a debt consolidation loan. If your application is approved, the lender will typically pay off your existing debts directly. You’ll then make one monthly payment to the lender until the debt consolidation loan is paid off.

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Factors to Consider When Consolidating Your Debt

When considering debt consolidation, it’s important to consider your personal financial situation. Consider your income, monthly expenses, and your ability to make the proposed monthly payment on the debt consolidation loan.

It’s also crucial to consider the total cost of the loan, including interest and fees. In some cases, the lower monthly payment achieved through debt consolidation may be due to a longer repayment period, which could result in you paying more in interest over the life of the loan.

Our Expert's comment on Unsecured Debt Consolidation Loans

Financial Expert Andrew Hagger.

Unsecured debt consolidation loans can offer a viable solution for individuals looking to streamline their debt payments without risking collateral. These loans provide the convenience of combining multiple unsecured debts into a single monthly payment, potentially reducing interest rates and simplifying financial management. However, it is important to carefully assess the terms and conditions, including interest rates, fees, and repayment terms, as they can vary widely among lenders. Additionally, individuals should consider their ability to make consistent payments and avoid accumulating new debts during the repayment period.

— Andrew Hagger, at Consolidation Expert.

Pros and Cons of Debt Consolidation Loans

Before taking out a debt consolidation loan, it’s important to weigh the pros and cons. On the plus side, debt consolidation loans can simplify your finances, lower your monthly payments, and potentially reduce your interest rate. However, depending on the terms of your consolidation loan, they may also extend the length of time to repay your debt and lead to higher total costs if you don’t manage them responsibly.

The Advantages of Debt Consolidation Loans

One of the main advantages of debt consolidation loans is that they can be used to simplify your finances. Instead of juggling multiple debts with different interest rates and due dates, you’ll have one loan with a single monthly payment. This can sometimes make budgeting easier and reduce the risk of missed payments. Debt consolidation loans may also allow you to secure a lower interest rate, particularly if you’re consolidating high-interest debt like credit card debt. A lower interest rate can save you money over the life of the loan and help you pay off your debt faster.

The Drawbacks of Debt Consolidation Loans

Despite the potential benefits, debt consolidation loans aren’t right for everyone. One potential drawback is that they can extend the term of your debt. While a longer loan term can lower your monthly payment, it can also mean that you’ll be in debt for a longer period and pay more in interest overall.

Additionally, if you use a secured loan to consolidate your debt, you could risk losing your home or other assets if you can’t make your loan payments. Finally, getting approved for a debt consolidation loan can be difficult if you have a poor credit score. In this instance, you may need to get in touch with a team like Consolidation Expert, who work with lenders that can often provide consolidation loans for bad credit.

Getting a Debt Consolidation Loan with Bad Credit

Having bad credit doesn’t necessarily mean you can’t get a debt consolidation loan. While having bad credit can make it more difficult to get approved for a debt consolidation loan, it’s not impossible.

At Consolidation Expert, we specialise in working with borrowers that have poor credit scores. If you’re looking to get a consolidation loan for bad credit, apply today – our experienced team may be able to help you get the loan you need to regain control of your finances!

A woman sitting on a bad credit score dial.

How Do I Choose the Right Unsecured Consolidation Loan?

When comparing loans, look for one that offers a lower interest rate, affordable monthly payments, and a reasonable loan term. Also, consider whether the lender charges any fees, such as origination fees or prepayment penalties.

Choosing the best debt consolidation loan involves considering several factors. First, look at the interest rate. A lower interest rate can save you money over the life of the loan. Next, consider the monthly payment. Make sure it’s affordable based on your current income and expenses. Also, consider the term of the loan. While a longer term can lower your monthly payment, it may also result in you paying more in interest over the life of the loan.

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For Unsecured Debt Consolidation Loans, Contact Consolidation Expert Today

At Consolidation Expert, we’re committed to helping individuals navigate their debt consolidation journey. We understand that dealing with debt can be overwhelming, and we’re here to provide the support, guidance, and practical consolidation loans you need.

Our panel of lenders may be able to provide unsecured loans up to £75,000, helping you to pay off any debts you owe and regain control of your financial future.

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Unsecured Debt Consolidation Loan FAQs

If you have unsecured loans of any kind, including store cards or credit cards, you may be able to consolidate them into one loan. This can help you simplify your payments and potentially save money on interest and fees. However, it’s important to consider the potential downsides, such as extending the term of your loans and potentially paying more interest in the long run.

If you reach the position where a consolidation loan is a feasible option for you, then it’s likely you’ll be in significant amounts of debt, or you’re struggling to pay more than the minimum payments / interest rates on your debts. When you’re in that position, it’s understandable that you might be seen as a loan risk – after all, if you’re struggling to repay what you’ve already borrowed, lenders are reluctant to lend you more.

As such, you might have a poor credit score or a bad credit rating. Fortunately, here at Consolidation Expert, we work with lenders who provide a complete range of debt consolidation loans to suit your needs – if a consolidation loan is the right option for you, our lenders may be able to provide one. Even if you have a poor credit history, we may be able to provide a consolidation loan for bad credit.

No, collateral isn’t always required for debt consolidation in the UK. While a secured consolidation loan can sometimes give you more favourable interest rates, our panel of lenders can provide unsecured debt consolidation if you have little, or no, collateral to offer.

A common example of unsecured debt in the UK is a credit card. Most adults have a credit card of some kind. Other examples of unsecured debt include personal loans and payday loans. These are all considered unsecured because they are not backed by collateral, such as a car or a house.

If the borrower fails to pay back the debt, the lender cannot seize any assets to cover the outstanding balance. However, these loans can have a significant impact on your credit score and may prevent you from being accepted for a loan, mortgage, or any other form of credit in the future.

No, not all debt consolidation loans are secured against your property. Here at Consolidation Expert, we work with lenders that may be able to offer you a debt consolidation loan that is unsecured.

If you can’t pay back your unsecured loan, then your credit score could take a significant hit. Any unpaid loan can negatively affect your credit and make it extremely difficult to recover from. For example, neglecting to repay your loan may stop you from getting car finance or getting a mortgage in the future.