Debt Consolidation Loans For Bad Credit

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Representative 277.5% APR Representative Example: Borrow £700 and pay £111.27 per month for 12 months at an interest rate of 140% per annum (fixed). The total charge for credit is £635.24 The total amount repayable is £1335.24. Representative 277.5% APR (variable). Your APR rate will be based on your circumstances.

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Dealing with one lender is almost too much, especially if the interest rates are exorbitant. But what more if you’re talking about multiple lenders? Talking and repaying a number of loan providers with different rates and terms and conditions is a hard task but you can make it easier through a debt consolidation loan. You can acquire it by visiting a bank or using the equity of your home. The entire loan application process works almost the same as the other lenders; you will submit the application form and documents, verify the information provided, and wait for a decision. The lender may send the money in as fast as two weeks or less depending on their policy.

Basically, you will use one single low-interest rate loan to pay off your other unsecured debts, such as the medical bills, credit cards, and personal loans.

consolidate your debt with a single loan

Is It A Good Idea To Get A Debt Consolidation Loan?

A debt consolidation loan is an efficient way to repay all your debts as long as you’re dealing with an affordable lender. It is also important to take note of your financial situation and make sure that you can handle the monthly settlement. Knowing your financial position is essential to avoid wasting money or get a financial assistance that you cannot afford.

You may ask an advice from a professional or a financial adviser to fully understand the loan. You may also ask if you have other alternatives to choose from. There are many experts available to talk to; otherwise, you may do a research online to find out the best way to get out of debts. Most professionals offer their service for free so there’s no need to worry about additional costs. Using either of these methods, you can make a decision about how you can keep yourself away from debts.

Meanwhile, you can use a consolidation loan to resolve your dilemma as long as it has a lower interest than rates of all your debts. Otherwise, getting it doesn’t make any sense. After all, the aim of acquiring consolidation payday loans is to reduce your repayments. You can guarantee yourself a low-interest loan if you have a good or excellent credit score. However, if your credit score is bad, you need to improve it first to ensure a lower interest rate.

A debt consolidation loan is also ideal if you are tired of dealing multiple credit accounts. Repaying different debts every month is exhausting and the best way to get rid of it is to repay it all at once using a single monthly debt. Rather than worrying about different due dates, debt amount, and loan providers, you will just think about a single company.

The loan is also ideal if you want to improve your repayment terms. If you’re looking for a loan that has a better repayment plan, then debt consolidation loans might be the best solution. Consider your current lenders’ terms and conditions and fees and charges and find another loan provider who can offer a better one. In case you find a deserving lender who has better terms and can help you settle all your debts, then go ahead.

why choose consolidation payday loans

Consolidation Payday Loans With Guarantor

Are you having a hard time repaying all your debts? Do you need a fast and easy solution to keep up with your finances? If yes, a debt consolidation might be the answer. This process allows the borrower to combine multiple unsecured loans into a single monthly settlement. One way to do this is by getting a debt consolidation loan through a trusted, affordable lender.

How A Guarantor Affects The Borrower’s Application?

A poor credit remark is always a problem when applying for a loan. Aside from the constant rejection, the next crisis that you have to deal with is the high-interest rate. This is when guarantor loans are handy. The lenders point out that there’s no credit check to get the loan as long as you can provide an eligible guarantor. This is good news for those who have a poor credit rating and have no credit history at all as they can get the money they need even with a bad credit history.

The guarantor, who will cosign the loan contract, will vouch for the borrower. He will also put any of his assets as collateral to secure the loan. In case the borrower fails to repay the loan on time or defaults on the loan, the guarantor will settle the loan on his behalf; otherwise, he will lose his property. Since there is a security used, the lender becomes more confident, thus increasing the chance of getting the loan application approved.

Consolidation Payday Loans: How Bad Credit Borrowers Make Debt Consolidations Work?

Although debt consolidation with guarantor sounds like a good idea, you need to take note of the right characteristics to make it work. You may not have the high credit score that the lender needs but as long as you have these two qualities, you can make the debt solution effective:

Stable Source Of Income

A good credit score or a guarantor is not enough unless you can provide a stable source of income. Part of the application will require you to submit any of the following: payslips, certificate of employment, or other proof of income. If you’re not working as a regular employee, you may look for a lender who accepts self-employed or recipient of benefits or pensions. After all, the only thing they want is to get their money back. No matter how high your credit score is, you can never have your application approved if you cannot provide the necessary proof.


A debt consolidation loan will help you solve your multiple debt problems but it will not be effective unless you are disciplined enough. It will make repayments easier but in return, you need to perform your responsibilities. Use the loan amount to settle your debt on time. Setup a monthly budget and a repayment plan and be sure to follow it all costs.

Debt Consolidation Loans Eligibility

Like other loans, you need to meet certain criteria to be accepted, and these are as follows:

  • Age: The loan seeker must be 18 years old and above
  • Proof of Residency: The loan seeker must provide a proof that they are a UK resident or citizen
  • Proof of Income: The loan seeker must provide documents that will support his income, employment, benefits, etc.
  • Valid IDs: The loan seeker must provide sets of ID to verify his identification
  • Bank Account: The loan seeker must provide his working bank account

Requirements To Be Qualified As A Guarantor

Being a guarantor is not easy and lenders have imposed strict requirements before becoming eligible. Here are some of the criteria to become a guarantor:

    • Age: The guarantor must be 21 years old and above
    • Proof of Residency: The guarantor must provide a proof that they are a UK resident or citizen
    • Proof of Income: The guarantor must provide a proof of high income and that he is working from a reputable company; otherwise, he must provide a proof of income from his properties
    • Valid IDs: The guarantor must provide sets of IDS to verify his identification
    • Bank Account and Bank Statement: The guarantor must provide his bank account, bank statement, and other necessary financial details
    • Collateral: The guarantor must provide a title or proof of his asset, such as stocks, house, car, etc.
    • Credit Report: The guarantor must provide a copy of his credit report showing a good or excellent credit remark

Consolidation Payday Loans With Direct Lender
Once your loan has been approved, you may feel like your financial dilemma has been resolved. However, it’s important to know that creating a new line of credit has not totally relieved your problems with debt. You are just making the repayment easier by dealing with one lender, rather than multiple accounts. There are even chances when you can make things worse and one of which is having the wrong lender.

The online world is a gateway to different loan lenders– some offer cheap rates with hidden fees, some offer unfair repayment terms, and some even pretend that they are direct lenders. So, if you want to consolidate efficiently, you need to take enough time doing a research. Find a direct lender who is transparent enough with all of their fees. Find a lender who offers flexible repayment terms or a lender that allows you to choose your own repayment date. And most of all, find a lender who will agree to consolidate your debts in a cheaper way.

getting the right debt consolidation loans

Consolidation Payday Loans With No Guarantor

Finding a guarantor is as hard as finding the right loan provider. Although it can be anyone – another family member, a friend, or a colleague – it’s not easy considering the huge responsibility he has to take. So, if you’re not a fan of guarantor loans, here are some debt consolidation options to choose from:

Personal Loan

A personal loan can be used on almost anything legal that you can think of, and one of which is to consolidate debts. For instance, you are eligible to borrow £20,000 but your debts are only £15,000; you can use the excess amount for something else, such as car repair, utility bills, sudden expenses, etc. The entire loan amount will be given to you so you are responsible for settling your current debts. You have full control of the money and you can decide whether you will repay your entire loan at once or not. Nevertheless, it’s important that you are disciplined enough to handle this loan; otherwise, you might end up with a bigger problem.

Debt Consolidation Loan

Like personal loans, this loan is unsecured; however, it is used solely to repay various debts. It is exclusively available to consolidate loans and other debts and most of the time, the lender is the one repaying. This means that you will only supply the necessary debt-related information and they will be the one who will consolidate the debts. Once the loan is approved, the debt consolidation lender is the one who will talk to all your current loan providers and you can start repaying them once a written confirmation is sent. The letter usually states that your original loans are settled. This is ideal if you have a good or excellent credit score to guarantee yourself a lower-interest rate.

Home Equity Loan

If you have a bad credit but you want to score an affordable debt consolidation loan, then secured loan might be an option. If you have a house under your name and have a considerable amount of equity, then you can utilize that to combine and repay your loans. Despite the poor credit remark, you can get a low-interest rate credit since the lender has something to hold on as a security. The house itself will make you a low-risk loan seeker. However, be sure to settle your loan on time and avoid defaulting; otherwise, you could lose your home.

Consolidation Payday Loans UK: Choosing Which Consolidation Cash Loans Instant Should Be Used

As long as you are getting a low-interest rate, all of these loans are effective. But then again, only one of which is the best. To get the right loan, you need to assess your financial situation and position first. Do you have a good credit? Can you provide a security against the loan? Do you need an amount exclusively used for debt consolidation? These are just some of the things that you need to know before you get a debt consolidation loan. You may also seek help from a professional to know which one will work best according to your needs and prerequisites.

Getting a loan is not easy; apart from providing all the prerequisites, you need to consider the responsibility and the risks. Therefore, it is important to know your capability to repay the loan before you get one.

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