Warning: Late repayments can cause you serious money problems. For help, go to moneyadviceservice.org.uk
Representative Example: On an assumed loan amount of £750 over 12 months. Rate of interest 292% (fixed). Representative 171% APR. Total repayment amount £1351.20 and total interest is £601.20. 12 monthly payment of £112.60.** We do not know how many customers take out a loan or the APR, this calculation is based on the mean APR of the lenders we work with
Debt consolidation loans allow you to put all your existing credit cards, loans and other bills into one single loan that you can pay off each month and eventually become debt-free. Compared to paying lots of different debtors and trying to stay on top of it, it is far more convenient to pay these all into one place, on a date that is more suitable for you. You can also save money with a debt consolidation loan - as you'll only be paying interest on one loan, rather than several, this could cost you less in the long run.
You can apply for a secured debt consolidation loan, so if you have a property that you have equity in and have paid off your mortgage for several years, you can release the funds to pay off your debts in one go. You then simply pay off your debt consolidation loan and interest over the next few months or years.
My Financial Broker can help you get the best debt consolidation loan for help you pay off your outstanding debts. We work with multiple lenders in the UK and can offer a free quote online with no impact to your credit score. To get started, simply click on apply now below and fill in your details.
Taking out further credit when you already have open loans is something you should give a lot of thought. Before you take out a debt consolidation loan, you should therefore ask yourself the following questions:
You should also make contingency plans, in case anything were to happen in the future that would stop you from making repayments. For example, how would you manage your finances if you were to lose your job, or if the interest rates of your loans went up? It can often be helpful to seek third party advice before taking out a debt consolidation loan too.
There are two main types of debt consolidation loans - secured and unsecured. With a secured debt consolidation loan, the amount you borrow is secured against the value of an asset. This would typically be your home. The risk with secured loans is that you are at risk of losing your collateral if you’re unable to keep to the due repayments.
With an unsecured debt consolidation loan, you don’t have to worry about collateral, so your assets won’t be put at risk. The downside is that unsecured loans tend to have higher interest rates than secured loans. We've listed a few common features of both secured and unsecured debt consolidation loans below:
A key benefit of a debt consolidation loan is that you can receive the money upfront which can be used to pay off any existing debts immediately. This can be very useful to reduce the annoying letters and phone calls from existing debtors – and you can potentially save money by not having any added interest or late fees applied.
You can apply for an unsecured debt consolidation loan which is based on your income and credit rating, and therefore there is no security used and there is no risk of having anything repossessed if you cannot keep up with payments.
However, most borrowers apply for a secured debt consolidation loan which is secured against your car or home, and this allows you to maximise the amount you need to borrow but your collateral is at risk if you default on payments. See secured loans for more information.
Yes, debt consolidation loans for poor credit are available, taking any existing debts that you have and consolidating them into one single, easier loan to pay off.
If you have a bad credit history, you will need a stable income, employment and ideally some valuable collateral that can be used as security. For most consolidation loans, borrowers will secure the loan against their vehicle or home, allowing you to release money. The lender will therefore have co-ownership of this asset for the loan duration and if you are unable to keep up repayments, your collateral could be repossessed.
If you are interested in a secured debt consolidation loan, your home or vehicle will need to be valued appropriately. To be eligible, your asset must be in good condition and the newer the vehicle or property, the more you will be able to borrow.
Initially, to apply for a debt consolidation loan, we just need some basic details which can be filled in our online application form. This includes how much you wish to borrow, how long for and some basic details such as your name, age, address and income.
This will help us give you an indicative quote and provide you with a list of options from our panel of lenders. If you wish to proceed, you will undergo further checks and be required to provide the information mentioned above to one of our chosen lenders.
If you apply for an unsecured loan, your funds can often be transferred to your bank account in less than 48 hours. For a secured loan, this could take a little longer as you will need to have your information and asset valued beforehand. If you have information about your outstanding debts and your assets available, this will help speed up your application.
My Financial Broker can help you compare guarantor loans and find the best loan product to suit your requirements. We have over 25 years of experience and have made close partnerships with some of the best guarantor lenders in the UK. We will match your application with the best lender, and there are no fees for applying and no impact to your credit rating. Simply click on the apply now button below to get started.Apply Now