|Payslips, tax records, bank statements etc.
|Statements from creditors demonstrating amounts owed.
|Proof of homeownership etc which may support your application.
|Photo ID, proof of address, National Insurance number.
How Does Debt Consolidation Work?
Debt consolidation involves taking out a new consolidation loan with funds to pay off your existing loans, credit cards and other unsecured debts as a lump sum(s). Your various creditors are repaid and closed, leaving just the new consolidation loan.
This takes all your debts currently spread across multiple accounts with various payment dates, interest rates and terms, and bundles them together into one easy place.
Now you just make one predictable repayment each month over a fixed term to your consolidation lender. Your debts are combined into a structured repayment plan with no surprises.
Common debts suitable for consolidation include:
- Credit card balances
- Store cards
- Payday loans
- Personal loans
- Utility bills
Through consolidation, you can potentially secure a lower interest rate than you currently pay across high-rate debts like credit cards. This reduces the total interest you pay overtime, saving money.
A debt consolidation loan gives you a clear path to becoming debt-free with manageable, consistent payments. But it requires diligently sticking to the repayment plan.