Debt Consolidation Loans For Bad Credit

If you have experienced issues with your personal finances or making repayments in the past, you may struggled with poor credit. It is no surprise that 1 in 4 of us will experience problems with money in our lifetime, potentially leaving us with a less than perfect credit file. However, at Debt Consolidation Loans, we totally understand that life can throw unexpected issues our way, so we take all debt consolidation loans for bad credit applications into consideration.

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

We are a debt consolidation brokerage service with a large panel of lenders that offer consolidation loans for bad credit. We personally check each application for your requirements and your affordability, then turn to our lenders to find the best solution for you. Once we have found good debt consolidation loans for bad credit to suit your needs, the lender will be in touch to finalise your application.

If you are ready to get started with your application for debt consolidation loans for bad credit in the UK, simply apply online and our team will work quickly to return with a lending decision.

What Are Consolidation Loans For Bad Credit?Debt Consolidation Loan with Defaults

Debt consolidation loans for bad credit allow customers to borrow enough money to pay off their current debts and owe money to just one lender. They are specifically designed to help people who are struggling with repaying multiple debts by offering them a way to merge the debts into one figure. By consolidating their debts, borrowers may be able to work with more flexible repayment options and reduce the stress of repaying multiple credit accounts each month.

Consolidation loans for bad credit are also designed for those with poor credit history, providing them a way of paying off their debts without the worry of missing repayments and damaging their score further. You can apply with total confidence as our soft search will not affect your rating and if you maintain the repayments on your debt consolidation for bad credit, you may even see an improvement to your score.

What Are The Advantages Of Debt Consolidation Loans For Bad Credit In The UK?

There are several benefits of debt consolidation loans for bad credit, especially if you find yourself struggling to make multiple repayments or are worried about missing repayments. This includes:

  • Reducing overall repayments – if the interest rate on your debt consolidation for bad credit loan is less than the combined interest of the previous debts, you may be able to save money each month. Rather than paying off multiple credit accounts with varying interest rates, you will have one payment per month with a single interest rate.
  • Improving your monthly budget – debt consolidation loans for bad credit in the UK allow you to merge your existing debts into one sum. This can include credit card repayments, mortgage payments, car loans, and store cards. By consolidating these debts into one figure, you will only need to pay one fee per month, making repayments easier to manage and budgeting a breeze.
  • Boosting your credit rating – you may see a boost to your credit rating if you pay off the total amount of the debt consolidation for bad credit loan in full. This will show on your credit file as a closed account with full repayment, which would be ideal for future credit applications.
  • Providing peace of mind – baring the burden of stress or worry is not good for anyone, especially when it is centred around money. By combining your debts into a manageable figure and having an achievable scheduled repayment date each month, you may find your mind is eased.

While there are several benefits to consolidation loans for bad credit, 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 for debt consolidation loans for bad credit.

What Are The Disadvantages Of Debt Consolidation Loans For Bad Credit In The UK?

Along with the advantages of consolidation loans for bad credit, there are also several disadvantages to consider. This type of loan is not suited to everyone, so make sure you consider each con carefully and determine whether this type of loan is the right choice for you. The disadvantages include:

  • Paying more overall – while some debt consolidation loans for bad credit in the UK may result in you paying less overall, some may result in you actually paying more. It is wise to conduct your own research to find the best interest rates and find a lender that offers a more affordable deal than what you had been paying.
  • Potentially high interest rates – this particularly applies to debt consolidation loans for bad credit with no guarantor. If you have poor credit, lenders may only offer high interest rates on their loan options. You may find secured debt consolidation loans offer better interest rates as they are secured against a high value asset, but it is worth shopping around to find the best deals.
  • A non-permanent solution – consolidating your debts does not guarantee that you will not go into debt again. To avoid falling into debt again, make yourself a realistic budget to stick to and save money where you can to build an emergency fund.

Before you apply for debt consolidation loans for bad credit in the UK, you should review your current monthly minimum payments and the expected length of time to repay the debts. Compare this to the time associated with a debt consolidation for bad credit plan and see which is likely to be more beneficial.

Can I Get Debt Consolidation Loans For Bad Credit With No Guarantor?

This is a common question we are often asked, and we are pleased to say that most of the lenders on our panel do not require a guarantor to obtain a consolidation loan. With their range of debt consolidation loans for bad credit in the UK with no guarantor, you do not need a third party to sign the agreement. Some loans may require a guarantor who will make your repayments if you default, but many of our panel do not need this kind of security.

With debt consolidation loans for bad credit with no guarantor, you may find that you need to secure the loan against a high value asset instead, such as your home. This means that if you miss repayments, this asset is at risk, but by securing collateral, you may receive better interest rates.

At Debt Consolidation Loans, we understand that may not always be possible to have a guarantor, but it is recommended that you try to find someone you trust to guarantee repayments. However, if you are looking for debt consolidation loans for bad credit in the UK with no guarantor, our lending panel has options for you.

Choose Us To Help You With Your Debt Consolidation Loans For Bad Credit
Can I consolidate business and personal debt into one loan

At Debt Consolidation Loans, we hold our applicants’ best interests at heart. We take a personal approach to our application process to check for affordability and to understand our customers’ needs. We consider all applications and will do everything we can to ensure you can make repayments. However, if we feel that you would struggle to make repayments, we would need to decline your application for your own wellbeing.

We aim to offer flexibility in our repayment plans, and with our good debt consolidation loans for bad credit, you will be able to make payments on a set date each month. This can help you to budget, as well as give you peace of mind when it comes to planning your finances. We are also completely transparent, 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 debt consolidation loans for bad credit, please do not hesitate to contact us. If you are ready to start searching for debt consolidation loans for bad credit in the UK, please apply now.

Debt Consolidation Loans For Bad Credit FAQs

Can I Get A Debt Consolidation Loan With Poor Credit?

Yes, you can get debt consolidation loans for bad credit from many of the lenders on our panel. We base our lending decisions on affordability and will find a lender that suits your needs, even if you have poor credit history.

How Could A Debt Consolidation For Bad Credit Loan Help Me?

Consolidation loans for bad credit can offer a range of benefits if you are looking for a way to pay off multiple debts. They can help you to budget your personal finances, offer the potential to pay less overall, make repayments much more manageable, and potentially boost your credit rating if you make repayments on time.

What Should I Consider Before Applying For Debt Consolidation Loans For Bad Credit?

It is essential to ensure that your debt consolidation for bad credit agreement will not leave you in the same position for a longer period of time, so consider your affordability first. You should also check whether the amount of interest gained in your new agreement will not outweigh the savings made by switching to a consolidation loan. If you are uncertain about your future position, such as health or employment, this is something else to bear in mind before applying for debt consolidation loans for bad credit.