Using a debt consolidation loan can help you consolidate all your outstanding debts into one single, more convenient loan, giving you one single monthly repayment to make and helping you pay off your debts in a more practical and cost effective way.
If you have a number of outstanding bills, credit card debts and loans, the numbers can quickly start to add up and the stress of bills mounting on the kitchen table can start to take its toll. Lending Expert is here to help.
We work with a number of debt consolidation loans companies, helping you compare rates across the entire market and find the best lender for you.
Our eligibility checker is simple and free to use, and you are just minutes away from receiving a bespoke, personalised loan quote. Borrow up to £25,000 and make one single repayment each month to consolidate all your outstanding debts.
A debt consolidation loan allows you to put all your existing debts (credit cards, loans, student loans, outstanding bills, overdrafts) into one single loan, with a single monthly payment which should have a lower interest rate.
You do not have to worry about paying multiple debtors and you save time by having the loan arranged and paid into one single place.
Debt consolidation loans are mostly used by homeowners and they come in the form of unsecured and secured, giving you the choice to secure the loan against your property or not.
You should hopefully be able to clear off some payments sooner than expected, whilst minimising any added interest or late fees in the process. This type of financial product is often seen as an effective way to consolidate all your debts and eventually become debt free.
Your loan will be secured against a valuable asset that you own such as a car or home (also known as homeowner loans). You risk losing your collateral if you do not keep up with payments. But since you have some form of expensive security, your rates are often much lower.
This is when your loan is not secured against any valuable asset and you do not risk losing anything if your loan is not repaid on time. You will need to have a fair credit history and regular income to be eligible. Failing to keep up with repayments will impact your credit rating and make the loan more expensive.
Yes, debt consolidation loans are available for people with bad credit. In fact, this type of product is often used by those with poor credit who are looking to borrow money and pay off their existing debts.
In order to boost your eligibility, you may be recommended a secured loan against your home or vehicle to improve your chances of approval.
Unsecured debt consolidation loans are also offered through our partners, where no collateral is required and your eligibility is based on your income, credit history and affordability.
Refinance your debts with Lending Expert today by using our eligibility checker provided. We ask for a few simple details through our application form and can provide an instant decision with some loan offers that are tailored to your requirements.
There are no fees for applying and the credit checks we run are ‘soft searches’ meaning that they do not impact your credit score and will not harm your chances of being accepted for this loan or any others.
Successful applicants looking for debt consolidation loans online can typically receive funds in 48 hours or a little longer if it is a secured loan since your assets will need to be verified and valued. The opportunity to take control of your finances and say goodbye to your outstanding debt is only a few steps away with Lending Expert.
Clearly the biggest pro is that you bring all of your debts together in one place so they become much easier to manage. Not only do you only have one payment to think about, your total monthly repayment is also likely to be less than if you pay all of the debts separately. With a longer term consolidation loan you are also likely to be paying a lower interest rate, which can be as low as around 3% if you have good credit and adequate home equity. One potential disadvantage of having a consolidated loan over a longer period is that you may end up paying more in interest over the term of the loan than if you have left them all separate. However, having one loan that you can reliably pay every month will keep your credit score healthy, while lots of debts that you may miss payments on by accident will not be good for your credit score.
Consolidation loans can be very effective if you have lots of outstanding debts and have a structured and organised way to pay them off. If you are a homeowner or own a property, then using this as collateral can be an effective way to get approved and borrow at a low rate. When deciding if it is right for you, consider if the interest rate will be cheaper overall than continuing to pay off the individual loans and cards that you currently have available. Other considerations include whether the loan amount will clear your outstanding debts, or will you need to take out additional funds? You should also think about the loan length, since the longer that the loan is open, the more interest will be added overall and make it more expensive. Plus, if the loan term is 5 or 7 years, one should consider if they will have any other potential loan requirements in that time (e.g for weddings or moving home) and how could this impact your financial position.
Applying for a loan will not negatively impact your credit rating. Once the loan has been funded, your credit rating will actually improve if you make payments on time each month. Having a better credit score will open you to more financial products in the future and allow you to receive better rates. If you miss monthly repayments, this will negatively impact your credit score and make future borrowing more inexpensive or difficult to get approved for.
If you are using a secured product and have used your home, flat or property as collateral, this could be at risk of repossession if you do not keep up with your payments. The lender will always try to find alternative ways to collect repayments, even using small instalments or repayment plans and repossession is often just a last resort.
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