Low Interest Debt Consolidation Loans

It is completely human to want the best value for money and to find affordable options that offer quality results. The same can be said when searching for debt consolidation loans. Life can be unpredictable and can result in us needing to find financial help. However, when the debts start to mount, we may need to find a way to consolidate them and pay them off in a sustainable way. This is where low interest debt consolidation loans could help. On this page, we will be discussing low interest debt consolidation, what they are used for, and alternatives that you may want to consider. That way, you will be able to determine the best option for your circumstances.

  • Years of experience in the finance industry
  • Large panel of consolidation loans lenders
  • Personal approach to application reviews
  • Bad credit applications considered
  • Easy online application process
  • FCA authorised, responsible broker service
A couple look happily at their application for a low interest debt consolidation loan on a laptop

We are a debt consolidation broker service who use a large panel of lenders to find the perfect consolidation loans for you. We take the time to personally check each application for affordability, then select one of our trusted lenders as the best solution for you. This means that we do all of the hard work for you, finding and comparing the best deals as quickly as we can. Once we have found the best consolidation solution to suit your requirements, the lender will contact you to finalise your application.

If you are ready to start your application, simply apply online and our team will begin reviewing your affordability to reach a lending decision.

Why debt consolidation?

  • Improve your monthly budget
    A debt consolidation loan will enable you to group all your existing borrowing and the monthly repayments are easier to manage.
  • Reduced overall repayments
    A debt consolidation loan could even save you money each month if the interest rate is less than the combined total interest of the previous loans.
  • Improved credit rating
    The simplicity of repaying a debt consolidation loan means that you are more likely to repay the debt on time every month. This will prove you to be a responsible borrower, which will have a positive effect on your credit score.

 

What Is A Low Interest Debt Consolidation Loan?

Everyone has a different idea of what is affordable, but usually, the lower the APR or interest percentage, the more affordable a loan is. This particular type of loan allows you to merge your existing debts into one figure, making it simpler to manage repayments. No matter what types of debt you have, whether they are credit card debts or personal loan debts,  low interest rate loans to consolidate debts could help. The consolidation lender will offer you the precise amount to cover your debts, so you will not need to worry about having the funds in your account to pay for them and giving you peace of mind. Once you have paid off your existing debts, you will owe money to a single lender rather than having to remember to pay multiple lenders each month.

However, before you consider applying for one of these loans, it is key to remember that they can be an expensive way to borrow. Loans for consolidation typically have a higher APR than regular personal loans, so you should only apply if you have the means of covering repayments. You may be able to find low interest debt consolidation options online, but you should make sure that the lender is legitimate with good intentions and authorised by the FCA.

What Are The Advantages Of Low Interest Debt Consolidation?

If you are unsure whether you should seek out low interest rate loans to consolidate debt, there are several benefits that you could take advantage of. These include:

  • Improving your monthly budget – consolidation loans allow you to merge your existing debts into one sum. In doing so, 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 low interest debt consolidation loan is less than the combined interest of your previous 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 debts into one 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 consolidation solutions, 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?

While there are several advantages of consolidation, 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 – not every debt consolidation solution comes with a low interest rate, so it is possible that the loans are offered 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 debt consolidation 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 the best low interest debt 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 affordable 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 low interest rate loans to consolidate debts, 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.

Why debt consolidation?

  • Improve your monthly budget
    A debt consolidation loan will enable you to group all your existing borrowing and the monthly repayments are easier to manage.
  • Reduced overall repayments
    A debt consolidation loan could even save you money each month if the interest rate is less than the combined total interest of the previous loans.
  • Improved credit rating
    The simplicity of repaying a debt consolidation loan means that you are more likely to repay the debt on time every month. This will prove you to be a responsible borrower, which will have a positive effect on your credit score.

 

What Are The Alternatives To Low Interest Debt Consolidation Loans?

While a low interest loan can be a useful way to consolidate your debts, there are a few other options that you may want to consider.

Secured Loan

A secured loan usually allows you to borrow a large amount, and you may be able to repay over a long time frame. However, a secured loan will need to be secured against a high value asset, such as your home or car. This means that if you cannot keep up with repayments, you risk losing your asset, so you should only consider this option if you are confident about making repayments. As there is less of a risk for the lender, you may find that the interest rates offered on secured loans are reasonable.

Balance Transfer Credit Card

If you have debts across a number of credit cards or store cards, they can be moved to a balance transfer card for easy management. If you choose a 0% balance transfer credit card, you may not have to pay interest on your debt for several months, which can save you money and help to clear your debt quickly. However, some balance transfer credit cards may come with a fee based on the amount you transfer, so review the fine print before you apply.

Release Equity From Your Home

Another option is a debt consolidation remortgage and releasing equity from your property. It is usually better to do this if your existing mortgage deal is coming to an end, otherwise you may have to pay an early repayment fee. Providing your property’s value has increased, you could take out a new, larger mortgage and use some of the equity to pay off other debts. However, bear in mind that the size of your mortgage loan will increase, so your monthly payments might also go up, even if you secure a mortgage with low interest rates.

If you need any more help with finding a suitable alternative to low interest debt consolidation, or advice on low interest debt consolidation loans for bad credit options, please seek impartial support from the Money Advice Service.

Choose Us For Your Consolidation

At Debt Consolidation Loans, we make our lending decisions with a human approach, rather than relying on automated software. We hold our applicants’ best interests at heart, and personally review each application for affordability and to understand our customers’ needs. We consider all applications and will do everything we can to ensure you can make repayments. This means that we are able to offer help to people from a range of financial situations, and provide low interest debt consolidation loans for bad credit. However, if we felt 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 easy loans, you will be able to make payments on a pre-agreed date each month that works with your budget. This can help you to manage your finances, as well as give you peace of mind. We are also completely transparent, so our soft search will not damage your credit rating and there are no fees for using our service.

If you would like any more information, you may find what you’re looking for in our FAQs, or you’re welcome to contact us. When you’re ready, it’s quick and easy to apply on our website.