What Is An Unsecured Debt Consolidation Loan?
Before applying for a loan, it is key to know what you’re applying for. With this type of loan, you will be able to borrow enough money to pay off your current debts and owe money to a single lender. They are specifically designed to help people who are struggling with multiple debts and keeping up with repayments by providing them with a way to merge their debts into one figure. The money they borrow will be used to pay off these existing debts, then the loan and interest will be repaid to the consolidation loan lender. Specifically, it allows you to borrow the money needed without securing it against any collateral, reducing the risk for you as a borrower.
There are also unsecured debt consolidation loans for bad credit available, which allow you to pay off your existing debts, even if you have had financial difficulty in the past. This type of loan focuses on your affordability to come to a lending decision, rather than your entire credit history, taking your monthly income, essential outgoings, and any other financial commitments into consideration. You can apply for these loans in total confidence as our soft search will not affect your rating. No matter your financial situation, we may be able to help.