Are you finding it hard to juggle several payments at once? Take out a Debt Consolidation Loan and clear your debts with just one, simple payment each month. Fill in the form to begin.
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The aim of a debt consolidation loan is to reduce the burden of multiple regular debt repayments. You take out another loan, equal in value to the sum of your debts, and then pay that off each month instead. That money is distributed to your creditors.
You will not be able to reduce what you owe, but by consolidating your debt you only have to pay one manageable monthly payment, and your new loan could have an interest rate lower than those which you are currently paying.
By taking out a debt consolidation loan with one of our panel of lenders, you will also have the chance to improve your credit rating if you pay it off without acquiring any more debt.
1. Fill in your details for no obligation debt consolidation advice
Our aim is to make the whole process of becoming debt free as simple and as painless as possible for you, and the first step is offering you a free debt consolidation comparison service. Just fill in the form above to begin.
2. Money Expert will help you to find the best consolidation loan
Once you've filled in our form and we have all the necessary information, we'll help you find a debt consolidation loan that is most appropriate for your situation.
3. Consolidate your existing debts into one simple monthly payment
Once you've found a suitable loan, all that remains to be done is to sign up, consolidate all of your existing debts, and they pay them off with one simple, manageable monthly payment. No longer will you have to worry about paying off several debts at once, each with a different lender and a different interest rate, with a debt consolidation loan, all of your debt is in one place.
Would a debt consolidation loan reduce my monthly payment?
It is possible for monthly payments to be reduced by taking out a debt consolidation loan. You can spread your payments over a longer period of time, thereby reducing the size of each individual payment.
The interest rate on a debt consolidation loan can also be lower than those of your current debts. Those applying for credit card debt consolidation for example are likely to get lower interest rates than what they are paying initially.
Benefits of a Debt Settlement Plan
● Reduce payments without affecting your credit rating
● Consolidate debts into one lower monthly payment
● Reduce payable interest rates
Disadvantages of a Debt Settlement Plan
● Reduced monthly payments may mean a longer loan term overall
● You may have to pay an arrangement fee
● If you have a poor credit rating you may not be able to obtain a loan or you may be offered a loan with high interest rates, or secure it against a property
Our loan search tool makes applying for a debt consolidation loan easy, but there's a few things you should always bear in mind. When you apply, lenders will consider your outstanding debt, how long you need to pay it back, and your credit history. If you have poor credit, you might have to secure your debt, against your house for example.
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Will my debt consolidation loan need to be secured?
If you have a bad credit rating/history, then lenders will generally only offer you a secure loan, this means that your property will be put up as security against the loan and will be repossessed should you be unable to pay it back.
How long will my loan last for?
This is up to you, you can choose how long you wish to have the loan for. Bear in mind that the longer the duration of the loan, the lower each individual monthly payment will be, but due to interest, you will end up paying back more overall. As such it is worth carefully considering your means so that you can get the best balance between the two, allowing you to become debt free as soon as possible.
How many creditors can my loan cover?
There is no formal limit to the number of creditors that a debt consolidation loan can cover, though if you owe debts to a large number of creditors, then your credit rating will likely be poor, and as such you will be offered an increased interest rate, or only a secured loan.
Can I consolidate my debt if I've got bad credit??
Yes, creditors will generally still offer loans to consolidate the debts of those with bad credit ratings, but will offer loans with either increased interest rates, or, more likely, only offer secured loans whereby your property must be put up as collateral.
What if my financial circumstances change?
If your financial circumstances change during the course of your loan, then it is worth contacting your creditor to see if you can reduce or increase your loan’s duration to fit with the changes to your situation.
Can I use a credit card
No, indeed rather the opposite; debt consolidation loans are often taken out as a result of inflated credit card debt and while you will still be able to use your credit card after having consolidated all your debt, it is not advisable, since doing so will simply increase what you need to pay back and worsen your credit rating.
Debt is a problem that most of us will find ourselves facing at least once in our lives.
But don't worry, with our comprehensive section of guides on debt solutions, you'll be able to find all of the information you need to get debt free right away