Apply Now

Consolidate your past dues with a debt consolidation loan

Debts are hectic to manage, and typically people have debts for various reasons like education, property, jewellery, travel etc. Working on multiple debts at the same time will bring a lot of hurdles and make you feel burdened. To defeat this, what can you do? Choosing affordable debt consolidation loans can be helpful.

Taking this sort of personal loan lets, you overcome the stress of your past dues as well as bad credit. However, debt consolidation facilitates you to make all your monthly payments quickly. Most importantly, the interest rate is relatively low.

Get your Personalised Loan Quote

What is a debt consolidation loan for people with bad credit?

A debt consolidation loan generally combines different smaller loans or credit card payments. With this, the borrower needs to pay just one monthly payment instead of numerous payments or dues.

Taking debt consolidation loans from a direct lender can be effective to consolidate all other debts. By the way, this will reduce the debt burden that you have. It only means you have rationalised the loan based on your convenience. These loans are helpful for individuals with multiple debts and poor credit by allowing a fresh financial start.

Conversely, it can streamline the finances to provide more favourable terms like lower interest rates or less monthly instalment amount.

Here is a clear example of how consolidating debts with a loan can simplify repayments and bring lower monthly costs:

Your Summary
Monthly Repayment (£)
Repayable term (Months)
Fixed APR Rate (%)
Total Repayment (£)

Before Debt Consolidation

Type of Debt Balance Interest Rate Monthly Payment
Credit Card A £2,500 28% APR £110
Credit Card B £1,800 26% APR £85
Personal Loan £3,200 19% APR £115
Store Finance £1,500 30% APR £70
Total £9,000 ---- £380/month

After Debt Consolidation

New Loan Type Loan Amount Interest Rate Monthly Payment
Debt Consolidation Loan £9,000 12% APR £215/month

Result

  Before After
Total Payments 4 1
Total Monthly Payment £380 £215
Estimated monthly Savings --- £165
See How Much You Could Save

What are the benefits of choosing a debt consolidation loan?

Consolidate multiple debts into one payment and be ready to obtain several benefits. These may include:

  • Fixed payment:

    Most unsecured debt consolidation loans come with fixed interest rates combined with seamless repayment terms. Yet, the monthly payment is the same for every month.

    Unlike other options, a predictable monthly payment is stress-free to work based on the spending plan. Overall, it is easier to keep different debts or bills obligations. In particular, the payoff date lets you press forward with all your past debt-payoff efforts in an easy way.

  • Possibility of lower interest rates

    People might get this loan for one of many reasons. One of them is a lower interest rate. This loan comes with comparatively lower interest rates than paying multiple debts. With this, you will save money overall.

  • Simplified finances:

    A debt consolidation loan can be a vital way to consolidate several monthly payments into a single payment. Of course, having one lender and a monthly bill will be a cool choice.

    In this scenario, do not worry about anything related to past debts. Also, assist you in avoiding missed payments by strengthening your payment history on time, which may improve your credit score.

  • Improves credit score:

    In general, loans & debts are all recorded in the credit report. Paying off all your past debts with a debt consolidation loan improves your credit report and credit score.

How does a debt consolidation loan work?

We are one of the fastest-growing lending companies, committed to bringing the perfect alternative to traditional loans. As the direct lender, we cut out the middleman to connect people who want same day debt consolidation loans.

Here are the steps on how to apply for a loan to consolidate multiple debts:

  • Contact us:

    We are an experienced team of professionals committed to offering the quick debt consolidation loans in the UK. So try to reach us to find the best solutions to get rid of all your past debts.

  • Loan application:

    We assist all our customers in getting the perfect loan from the beginning, as we assist in completing the online application process correctly with accurate details. It is the most important step to initiate the loan process effortlessly. Especially we verify and access your loan application and the supporting documents promptly.

  • Quotes and fund transfer

    We assist our customers in understanding the exact terms and conditions of the loans mentioned in the final agreement and quotes. Once we approve your application, the loan amount you apply for is paid directly into your savings bank account.

Start Your Debt Consolidation Application

Is a debt consolidation loan with bad credit a worthy choice?

Yes, bad credit debt consolidation loans can be useful for you to consolidate multiple debts carrying high-interest, such as credit cards, unsecured loans, medical bills, or other debts.. It is a practical choice for avoiding different issues related to past debts.

Getting these types of bad credit loans is useful for borrowers for different reasons, such as:

  • Let’s You Pay Many Debts at Once: You can manage multiple debts with a single loan and potentially lower interest rates.
  • Simplifies Your Finances: With a single monthly payment, you can manage your household budget alongside your loan instalment.
  • Makes Your Debts Affordable: You have merged all debts into a single loan, which now has a single interest rate, making it more affordable.
  • Let’s You Pay Your Debt earlier: Multiple debts often have different due dates, which take up more of your time. Instead, with poor credit debt consolidation options, you can pay off debts well before time.
  • No guarantor is required: The lender has offered you a loan based on your income capacity. When you are capable of repaying the loan, there is no need to include a third party. It means you may qualify for a debt consolidation loan with no guarantor despite a bad credit score.
Debt Consolidation Loan

How to manage debt consolidation loans with bad credit?

Once you receive enough funds from debt consolidation loans for bad credit from a direct lender, it is important to manage the money.

Debt Consolidation Loans With Bad Credit

Here are some methods to pay back your loan without floating new debt.

  • Work with a budget:

    Once you receive a loan, it is vital to draft a budget which helps to outline how you will repay the money.

    This process ensures that you will be capable of doing so. If any additional funds are left over, you pay down other debts you didn’t consolidate to lower your DTI ratio.

  • Pay off all debt directly

    Once you get a consolidation loan, you should immediately pay off your past dues or debt.

  • Try to set up automatic payments

    Many do, and some will give a discount for setting it up. It could be the smart way to lower the interest payments. In contrast, it will help you to monitor all financial activities. Meanwhile, making timely payments is the best way to manage a steady credit score.

Check Your Eligibility Without Affecting Your Credit Score

What are the alternatives of debt consolidation loans ?

Generally, the type and scale of the debt you need to consolidate let you determine the correct type of loan for easy use. For instance, you can use a secured loan or a mortgage if you have your own house.

Before choosing anything, it is better to know the exact factors associated with the options to avoid additional risks. Here are some of the alternatives of consolidation loans for bad credit:

  • Short-term instalment loans

    It is the common choice among people who need loans of up to £2000. It is repayable over 1 to 24 months. Still, it is an unsecured debt consolidation loan where you do not need any collateral to submit.

  • Long-term loans

    Many individuals are facing problems with larger debts, such as car loans. They require substantial funding to manage those debts, and long-term debt consolidation loans in the UK may be the wise option. It can be a more useful option than remortgage, but you need to provide collateral.

  • Secured Personal loans

    These personal loans for debt consolidation come with the limit of £1,000 to £25,000. The repayment term will be up to ten years. This secured loan comes with a lower rate as loans secured by a property. In this scenario, you can borrow more based on the value of that property.

  • Unsecured loans:

    Unsecured debt consolidation loans do not need assets to secure the borrowed amount. However, the interest rate will be higher. These are ideal for managing debts of up to £10,000. The approval will depend upon individual circumstances and affordability.

  • Same-day loans

    The need for additional funds can arise at any time. You can get fast funding by applying for our same-day loans for immediate debt consolidation. The approval may be subject to an affordability check and individual repayment capacity.

  • No guarantor loans

    You can opt for our dedicated deal on no guarantor loans to consolidate debts. With no personal guarantee, you will be liable to repay the loan on time. It may have a higher interest rate, so you should be confident of your ability to repay.

Why choose Cashloans2go for your debt consolidation loan?

At CashLoans2go, we offer soft credit check debt consolidation options seamlessly.

  • We hold our applicants’ best interests and take a personal approach to the smooth application process, from checking the affordability to knowing all our customers’ needs.
  • We have huge industrial knowledge, consider all applications equally, and do everything for you to make repayments. Besides, we also offer flexibility when it comes to repayment plans.
  • With same-day payout debt consolidation loan, we give you peace of mind while managing your finances. We are customer-centric and transparent.
  • We always assist our customers in getting more information about our debt consolidation loans.

Utilising a debt consolidation loan from us can relieve you greatly. Most importantly, it would help if you spoke with our experts, who can help you know all the terms related to debt consolidation.

Apply Online in Minutes

FAQ's:

How much can I borrow with a loan of debt consolidation?

You can get a minimum of £500 to consolidate your small debts. In some situations, we may provide a £5000 debt consolidation loan for bad credit, subject to individual affordability.

Will consolidating my debts affect my credit score?

If you repay on time with no missed payments or defaults, your credit score won’t be impacted negatively. Otherwise, missing a repayment will severely affect your overall credit record. Besides, you need to check whether the lender is conducting a hard or soft credit check.

Can I save more with a debt consolidation loan?

Yes, a new loan may allow you to save money. The primary benefit is that it may offer a lower interest rate. Nevertheless, if you opt for long-term loans for debt consolidation, the total interest cost will rise. Therefore, comparing loans is essential based on their total repayment amount rather than just the monthly instalment.

Who can be eligible for a debt consolidation loan in the UK?

Lenders usually measure individual eligibility based on several factors. These usually include age (18+), UK residency, steady income, and credit history. In addition, a mandatory affordability check will be conducted to review your eligibility.

What types of debts can I consolidate with a loan?

Most of the time, UK individuals prefer to merge debts from credit cards, store cards, payday loans, overdrafts, and small personal loans. However, consolidating mortgages may not be possible.

Are there risks to debt consolidation?

Yes, there are risks to consolidating debts with a loan. For instance, if you miss the payments, your credit score may be affected. Moreover, the overall loan cost will increase if you spread repayments over a longer duration.

Apply now