Debt Consolidation Loans

Leaves you with one monthly repayment instead of many

A debt consolidation
loan could:

  • Make your budgeting simpler
  • Lower your monthly repayment
  • Lower the rate of interest you pay

Do You Qualify For Debt Consolidation?

Call 0800 970 7673

Fees & Key information

Find out more about the fees involved with each debt solution.

Find out if you qualify for Debt Consolidation

Tell us about your situation

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Useful free guides

Download the Insolvency Service guide to dealing with lenders.

Download the information package from Scotland’s Insolvency Service.

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Debt consolidation: finding a loan

Have you ever considered consolidating your debts with a loan? If you're repaying several debts well every month, you may be looking to make things a bit simpler.

If this is the case, taking out a debt consolidation loan could be an ideal approach. Covering your current existing debts with a loan could help you:

  • Reduce your monthly outgoings
  • Simplify the way you manage your debts
  • Protect - and help you improve - your credit rating.

At Debt Advice Now, we're dedicated to helping people find the best way of dealing with their debts. Let's look at what you should consider when looking for the best debt consolidation loan for you.

How could a debt consolidation loan protect your credit rating?

Many approaches to debt will damage your credit rating: making lower payments on a debt management plan, for example, will be recorded by credit reference agencies on your credit file for six years, which can make it difficult to get further credit, or successfully apply for a bank account, during this time.

However, consolidating debts with a loan could only be suitable for people who are on top of their monthly repayments - you're not entering insolvency or asking your lenders to accept lower payments, so your credit rating won't be harmed.

In fact, a debt consolidation loan could help you protect your credit rating. As grouping your existing debts into a loan means you'll only have one repayment to make (to one lender) each month, you should be less likely to miss your payments or make them late, which could go a long way to maintaining your credit score.

So, debt consolidation could even help you improve your credit file, as long as you keep up with all your payments and repay the loan in full. A positive note on your credit record could make you look more favourable to lenders if you decide to borrow more money in the future.

Of course, a debt consolidation loan could only help you to do this if you can keep up with all your monthly payments, so - as with any loan - it's important to be confident that you can make all your payments on time until you've cleared the loan in full.

Do you have any more questions about debt consolidation loans and their impact on your credit rating? We could help. Fill in the form on this page or call 0800 970 7673 to find out more.

Looking for the best debt consolidation loan

There are many different providers out there offering debt consolidation loans - but whoever lends you the money, there are a few things you'll need to think about:

  • How quickly you wish to repay the loan
  • How much you can afford to repay every month
  • What interest rate you'll be charged on the loan.

All these things could have a big impact on the way you repay your consolidation loan.

For example, you may feel that repaying your loan over a longer period - which will reduce the amount you'll need to repay every month - is the best approach for you, although it could cost you more overall, as interest will accrue for longer too.

On the other hand, you may feel happier repaying the loan faster if you can safely afford to do so, by making larger monthly payments, which could actually save you money in interest in the long run.

But when it comes to interest, if you can find a debt consolidation loan with a lower interest rate than your current debts, you could actually save money in the long term (particularly if you have unsecured debts such as credit/store cards, which tend to come with high APRs).

If you're looking for a debt consolidation loan, we could help you find the best deal for your needs. Get in touch with us today for more information.