Personal Loan Store Logo
UK Loan Comparisons























Debt Consolidation Loans

What is a debt consolidation loan?

Put simply, it is a loan that is used to pay off other existing debts, resulting in just one monthly payment. This type of loan is commonly used to combine unsecured debt, making it easier to manage your overall budget and stick to a repayment plan.

Apply for a debt consolidation loan today!

How Do I Know If Debt Consolidation Is Right For Me?

Debt consolidation may be a good idea if you find yourself in any of the following situations:

  • You’re tired of making several different debt payments each month and would like to combine them into just one payment
  • You’re having trouble staying current on the payments for your existing debt
  • Your existing debts have varying interest rates and you’d like to lock in one rate for everything
  • You want to reduce the amount of your monthly budget that goes toward debt repayment
  • You’re looking for an easier way to pay off existing debt and become debt free

Types Of Debt Consolidation Loans

Debt consolidation loans can be either secured or unsecured. A secured loan uses something of significant value to secure the loan amount. The most common source of security for such a loan is your home. Secured loans are less risky for the lender, usually leading to a lower interest rate and larger amounts available for borrowing.

An unsecured loan is not secured against something of significant value, so it is much riskier for the lender. This type of loan usually comes with higher interest rates, smaller amounts available for borrowing, and often includes restrictions on how you can spend the money you receive.

In either case, secured or unsecured, the debt consolidation loans available to you will depend on your credit rating. Those people with poor credit can still access debt consolidation loans, however, and over time can even improve their credit rating by diligently making payments on time and in full.

Why Would I Want A Debt Consolidation Loan?

There are many reasons why you might want to seek a debt consolidation loan. For example, you may be able to reduce the total of your monthly debt payment and simplify your budget by making just one payment to a single lender. Or, you may be having trouble keeping current on your existing debts and need a way to make your payments affordable while repairing your credit rating over time. Consolidating your debts may mean it will take longer overall to become debt free, but in many situations it’s worth it if consolidation will improve your overall financial health.

I Have A Bad Credit Rating And Don’t Think I Can Qualify For A Loan

While it’s true that many lenders won’t write loans to people with a bad credit rating, there are many other lenders who specialize in such loans. They typically charge a higher interest rate and may place more restrictions on how you spend the money you receive, but the benefits of getting your debts under control often outweigh the additional costs involved.

Where Can I Find A Debt Consolidation Loan?

More than ever, consumers have a wide range of options for finding a debt consolidation loan. There are numerous web sites and online resources at your disposal, and many lenders have moved to all-electronic loan process. Be sure you thoroughly read the details of each lender’s offer and make careful comparisons among them. Don’t allow yourself to be rushed into a making a decision; wait until you have gathered enough information to make an informed, thoughtful decision.

Debt consolidation loans are an increasingly common option for people in a variety of financial situations. Before you decide if it’s right for you, carefully evaluate the advantages and disadvantages of such a loan and take advantage of the plentiful information resources available to assist your decision-making process.

Latest Debt News:

  • Banks waiting for loan application rush to cover Christmas debt
    Over the recent Christmas and New Year period, many people will have run up huge debts on their credit cards, store cards, catalogues and overdrafts, with a huge number having splashed out on gifts, clothes, partying and entertainment and not stopping to count the financial cost until it was too late.
  • Debt consolidation could be helping many people
    Many households and individuals in the UK are experiencing issues with high levels of debt these days, with many literally teetering on the financial edge because of issues such as high debt levels, frozen pay, soaring living costs and the financial climate in general.
  • Understanding the Process of Debt Consolidation Through Consolidation Loans
    If you are thinking about applying for some kind of loan – whether it is a secured loan or an unsecured one – you need to be sure you are responsible enough to handle the repayments.
  • Are Debt Settlement Commercials Offering A Real Service?
    You've seen them on TV claiming to be able to rid you of debt, but do debt settlement commercials actually tell you the full story? Read on to find the truth behind these debt settlement claims.
  • How to better manage your debts
    Many of us know how difficult it can be to deal with high levels of debt, and when you have a wide range of creditors to deal with and a variety of repayments to make each month, budgeting and financial management can become very difficult.



More debt information and advice

Early Redemption Penalties - Loan Extras - Debt Consolidation Bad Credit - Choosing a Personal Loan - Loan Penalties - Money Saving Loan Tips - Loan Reviews
Site Map - About Us