If you want to apply for the best debt consolidation loans, at Personal Loans Now, we can search the market. We’ll find the best rates available with just one application showing a debt consolidation loan comparison. Using 40+ direct lenders, we can help you make your monthly repayments more manageable. Click apply now, and we’ll help you quickly find the right debt consolidation loan for you.
What is a Debt Consolidation Loan?
Debt consolidation loans in the UK are a form of personal loan to cover outstanding credit you may owe. This will make it easier for you to manage repayments so that you have just one lender to pay rather than many. Debt consolidation loans are ideal for anyone with more than one loan or credit card they owe money to at once. They will turn multiple debts into one loan and, in some instances, reduce the amount spent each month on repayments.
It can be difficult staying on top of payments if you have more than one type of borrowing. With different repayment amounts and dates to meet, it can become confusing. With a debt consolidation loan, one lender can provide you with enough funds to pay off your other creditors. This means you will have just one loan to pay each month. For example, you may owe £1,000 to one lender, £2,000 to another and £5,000 to a third. They all may have different repayment amounts and terms as well. A debt consolidation loan for £8,000 would be enough to pay off each of these debts. This would leave you with just one loan to pay each month. If a debt consolidation loan sounds like the ideal solution for you, click apply now. We can show you a debt consolidation loan comparison personalised to you.
Am I Eligible for a Debt Consolidation Loan?
If you want to apply for a debt consolidation loan, you will need to meet the following eligibility requirements:
- You must be 18 years of age or older
- You have a UK bank account
- You are a current UK resident
- You have a regular source of income
Meeting the above will enable you to see your own personalised table of offers. This will show you 40+ lenders who can help you. Please note, meeting the above requirements does not guarantee you will be approved for a debt consolidation loan. You’ll need to pass a credit check and prove your affordability to make monthly repayments. You can use our handy loan calculator to see how much the loan will cost in interest and repayments.
Why Choose Personal Loans Now for Debt Consolidation Loans in the UK?
We can offer many benefits when searching for the cheapest debt consolidation loans on the market. Here are some great reasons for choosing Personal Loans Now:
- Complete Online Process – being approved for a debt consolidation loan is fully online with us. This means no waiting for paperwork.
- High Acceptance Rates – we offer high approval rates, having helped 50,000 people already get the loan they want.
- Low APR Rates – we search the entire loans market to find you the lowest APR rates available.
- Instant Approval – we can provide you with an instant decision in just 90 seconds.
- Same Day Funds – once approved, you will receive the loan into your bank account on the same day.
- FCA Authorised Lenders – we’re an FCA authorised direct lender and broker. We can connect you with other FCA authorised lenders, all committed to responsible lending.
Click apply now to get your own personalised table of offers today. Without having a credit search conducted, you’ll see the offers available from 40+ direct lenders. All best placed to help you, detailing the loan amount, interest charge and repayment terms available. Once you have chosen the lender you want to continue with, a credit check will be performed. If approved, you can receive the funds on the same day. This is assuming your application is approved within regular working hours (9-5 pm).
Can I Get an Unsecured Debt Consolidation Loan with Bad Credit?
A debt consolidation loan is ideal for anyone with multiple types of borrowing. If you want to make paying for your total debt much easier and manageable, we can help. If you have bad credit, you may be able to get a debt consolidation loan to help you. But you may not have access to the lowest APR rates available. Also, the total amount you can borrow will be limited. A maximum of £7,500 can be applied for if you have bad credit. This can mean higher amounts of interest may be applied, or the repayment terms may not be as desirable.
If you have multiple amounts of debt with different lenders, a debt consolidation loan can be ideal. But you will need to prove your affordability with your credit rating taken into consideration. We are proud of our high acceptance rates, so if we cannot help you, we can show you the lenders who are best placed to. You should consider your options and thoroughly check your affordability before applying for a loan. This will help you avoid any negative impact on your credit rating.
Debt Consolidation Loans FAQs
What is the Cheapest Debt Consolidation Loan Available?
Depending on your reasons for a debt consolidation loan, the repayment terms and interest can vary. At Personal Loans Now, we’ll show you the very best rates no matter what your current credit rating is. We’ll help you find the best debt consolidation loans for your situation. To get the cheapest debt consolidation loans, you’ll need to have a good credit score. You’ll also need plenty of affordability to match the repayment terms. We cannot guarantee you’ll see the cheapest loans. However, having both a good credit score and high affordability will mean an improved chance of finding them.
Can I Get a Debt Consolidation Loan for Higher than £25,000?
Unsecured debt consolidation loans can be offered for up to £25,000. If you’re looking for a higher amount, you’ll need to look at our secured loan offers. With a secured loan, you’ll be able to apply for between £10,000 and up to £250,000. As long as you have the personal assets to offer as security. Secured loans would need something like a vehicle or property of value to be secured to the loan amount. This is due to the amounts being lent being much higher than usual. This can be a great alternative option for the right person. Especially if you want to consolidate a higher amount. However, it can mean a higher amount of interest owed overall. Also, higher monthly payments over a longer loan term could be required.
What are the Rates of Interest on Debt Consolidation Loans?
The rates of interest can vary from each lender, with both fixed-rate loans and variable rate loans offered. At Personal Loans Now, we offer a fixed rate of interest, charging 39.7% RAPR (representative annual percentage rate). This means the interest amount you pay stays the same throughout the loan term. Whereas with a variable rate, the interest charge can increase as well as decrease during the loan term. You’ll need to check the credit agreement for the type of interest applied, ensuring you’re happy before proceeding. Please note, the lenders we connect you with may charge up to 99.9% interest, so be sure to check the terms before agreeing to the loan amount offered.
I’m in Long Term Debt; is a Debt Consolidation Loan Right For Me?
A debt consolidation loan can help if you are in long term debt. However, they cannot be offered to someone who is in financial difficulty. You’ll need to have the affordability to ensure you meet the monthly repayments on time. Having a good credit rating helps increase your chances of approval. A debt consolidation loan is predominantly used to pay off other debts. But this should not be used as a quick fix so that you can take out further borrowing. If you’re experiencing financial difficulties, you should seek free financial advice. Not-for-profit organisations, such as Citizens Advice or the Money Advice Service, can both offer advice.
Will a Debt Consolidation Loan Have a Negative Impact on my Credit Rating?
When applying for a loan, as a credit check will be performed, this will show on your credit file. If you’ve applied for multiple products in a short space of time, this will have an effect on your credit rating. You should carefully consider you position when applying for a debt consolidation loan. We highly recommend that you check your credit score beforehand as well. A credit reference agency, such as Experian or Equifax, can show your current credit score. They’ll also show you what data a lender can see about you during the approval process.