Consolidate Credit Card Debt

Using a credit card and repaying your outstanding balance each month can be a great way to boost your credit score, but what happens if you struggle to make repayments? If you have multiple credit card debts, you may start to consider taking out a loan to consolidate credit card debt. At Debt Consolidation Loans, we understand how it can feel if you struggle to stay on top of your finances, so we take all applications for credit card debt consolidation loans into consideration.

  • Years of experience in the finance industry
  • Large panel of credit card consolidation lenders
  • Personal approach to application reviews
  • Bad credit applications considered
  • Easy online application process
  • FCA authorised, responsible broker service

We are a debt consolidation broker with a large panel of lenders that offer solutions for credit card consolidation. When you apply with us, we personally check for your affordability and to understand your requirements, then turn to our lenders to find the best option for you. Once we have found a credit consolidation loan to suit your needs, the lender will be in touch to finalise your application.

If you are ready to get started with your application, simply apply online and our team will work quickly to return with a lending decision.

What Are Credit Card Consolidation Loans?

A credit card consolidation loan allows customers to borrow enough money to pay off their current credit card debts and repay the money to a single lender. There are various debt consolidation loans available for a range of needs, such as debt consolidation mortgages, but in this case, we’re talking about loans used to consolidate credit card debt. This type of loan merges all of a customer’s existing debts into one figure for simpler repayments to a single lender, rather than to multiple providers or finance companies.

We take a human approach to all of our applications, so we personally check for affordability rather than basing our decisions on your whole credit history. This means that we can also offer credit card consolidation loans for bad credit. Life can often throw unexpected situations our way, which may leave us with a less than perfect credit score, but we might be able to help. You can apply with total confidence as our soft search will not have an impact on your credit rating and if you maintain the repayments on your credit consolidation loan, you may even see an improvement to your score.

Why Consolidate all your Debts?

  • It will improve your personal budget
    You can put all your borrowing into one easy-to-manage loan, which means your monthly payments are easier to control.
  • Less repayments
    A loan could even save you money each month, especially if the loan interest rate is smaller than the total interest rate of all your debts.
  • Better credit rating
    The ease of repaying a loan means that you can prove that you are a responsible borrower, which will have a positive effect on your future credit score.

 

What Are The Advantages Of Credit Card Consolidation?

If you are unsure whether you should consolidate credit card debt, there are several benefits that you could take advantage of. These include:

  • Improving your monthly budget – our consolidation loans allow you to merge your existing debts into one sum. This can include your credit card and store card debts, as well as repayments on car loans or mortgages. By consolidating these debts into one figure, you will only need to pay one instalment per month, allowing you to budget in a much simpler way.
  • Boosting your credit rating – you might see a boost to your credit rating if you pay off the loan and interest in full. This will show on your credit file as a closed account with full repayment, which will be seen by lenders and finance companies during future applications.
  • Reducing overall repayments – if the interest rate on your loan for credit consolidation is less than the combined interest of your previous credit card debts, you may find that your monthly repayments are less than you expected. Rather than paying off multiple credit accounts with varying interest rates, you will have one payment per month with a single interest rate, so you could save money by researching into the best deals.
  • Providing peace of mind – no one should have to experience financial stress or anxiety, but this could be reduced by finding a solution. By combining your credit card debts into a manageable figure and having an achievable scheduled repayment date each month, you may be able to find peace of mind.

While there are several benefits to solutions designed to consolidate credit card debt, they need to be considered carefully before applying, just like any other type of credit. If you need more support or help with your financial situation, please contact the Money Advice Service before applying.

What Are The Disadvantages Of Consolidating Your Credit Cards?

While there are several advantages of consolidating your credit card debts, there are also several disadvantages to consider. This type of loan is not suited to everyone, so it is essential to consider both the benefits and drawbacks to determine whether this type of loan is right for you. The disadvantages include:

  • Potentially high interest rates – it is possible that your credit card consolidation could come at a higher rate than what you currently pay. Interest rates are often based on your credit rating, so if you have poor credit, you might find it difficult to secure an affordable interest rate. You may find secured loans offer better rates as they are secured against a high value asset, but it is worth shopping around to find the best deals.
  • Paying more overall – while some consolidation loans may result in you paying less overall, some deals may actually result in you paying more than you expected. It is wise to conduct your own research to find the best interest rates and find a lender that offers affordable deals.
  • A non-permanent solution – while it can provide a temporary solution, consolidating your debts does not guarantee that you will not go into debt again. To avoid further financial difficulties, you should make yourself a realistic budget to stick to and evaluate where you could save money.

Before you apply for loans to consolidate your credit cards, you should take the time to understand your current situation. Review your current monthly minimum payments, the expected length of time to repay the debts, and use comparison tools to find loans that work for your needs.

Choose Us To Consolidate Your Credit Card Debt

There are many different financial products available on the market, but credit consolidation can be a real lifeline for people struggling with unmanageable debt. Whether you are trying to get a handle on your debt repayments, wanting to become debt-free, hoping to rebuild your credit score, or just want to simplify your finances, we have the expertise to help.

We aim to offer flexibility in our repayment plans and a set date each month for repayments, so you can consolidate credit card debt in a way that works for you. This can give you peace of mind when it comes to planning your finances, as well as providing you with simple budgeting solution. We are also completely transparent when it comes to repaying, so there are no fees for using our service and our soft search will not damage your credit rating.

If you would like any more information about our loans for credit card debt consolidation, please do not hesitate to contact us.