Debt consolidation loansA debt consolidation loan could be an ideal solution if you want to turn debts with multiple creditors into one simple payment. By borrowing enough money to pay off the debts you owe now, you will only have to repay one lender. This could make your life a lot simpler. Find out more about your debt consolidation loan here.
Why choose us to help?
You could have the money in as little as two hours
Our online application takes minutes to complete
Focus on one monthly payment
You won’t pay any upfront fees
Got bad credit? No problem. You will always be considered
We have a team of experienced advisors
What does a debt consolidation loan do?By taking out a debt consolidation loan which covers all your outstanding debts, you’ll hopefully only have to pay back one creditor at the end of every month. This brings everything you owe into one place and can help to alleviate the stress from having multiple lenders chasing you. As well as this, the loan could help reduce the amount you pay each month. However, before making your application it’s important you have a good understanding of the different consolidation loan types and the circumstances when it is the best solution. Debt consolidation loans have two forms: secured and unsecured:
- Secured – This is when a loan is fixed against an asset, usually your home. By securing your property on the loan you are more likely to be accepted. However, if you fall behind on payments you could risk losing your home.
- Unsecured – An unsecured loan is when you don’t have to offer your home, or any other asset, as security. However, you may also have to pay more interest on this loan than you would if it was secured.
What debts can be consolidated?Debt consolidation loans cover a wide variety of expenses. For example:
- Personal loans
- Store cards
- Credit cards
- Short term loans
- Utility bills
- Phone bills
- Mortgage payments
- Court fees
- Car or vehicle loans
Is a consolidation loan right for me?To understand whether a consolidation loan is right for you, you should fit the following criteria:
- You’re struggling to make ends meet due to debts from multiple creditors.
- You have a steady and stable source of income which provides enough to make the repayments
- The loan would work out as better value than your current situation.
When a consolidation loan isn’t rightWhether or not a debt consolidation loan is the right decision depends entirely on your situation. If the following applies to you then this solution may not be the best choice:
- You can’t afford any sort of monthly loan repayment
- You don’t clear all your debts with the loan
- You end up paying more overall because the monthly repayments are higher or the term of the agreement is longer
Debt consolidation loans for people with bad creditIf you have bad credit some companies may reject your debt consolidation loan application. We think this is unfair and we believe, no matter how poor your credit score, your history should not get between you and resolving your debts. Therefore, Consolidation Express will always consider you. However, to get the best interest rates on your loan, you will generally need a good credit score. As a result, while you may receive the funds you’re after – and could start dealing with your lenders by this time tomorrow – you may have to pay higher interest rates than other customers.
Considerations of debt consolidationAlthough debt consolidation has several advantages, it does have some negatives. For example:
- Debts are not written off and must be repaid in full
- There are interest rates associated with the loan – these charges are not frozen.
- If you don’t keep up with the loan repayments, and although you should have time to rectify this, this could result in legal action.
- Depending on the terms you’ve selected, it may take longer to repay your debts than would have otherwise been the case. However, you should be in a better financial state.