What are Debt Consolidation Loans?

Do you need the best loan to counter this financial mess?

A debt consolidation loan could help you in such a scenario. At EasyPolicyLoans, we aim to help you out from the pending debts problem irrespective of any credit score.

The debt consolidation loans in the UK are meant for paying off all your existing debts and convert them into a single loan option. Such a procedure helps you to manage only one monthly repayment and one interest rate to pay.

When you have to pay several repayments, it puts an extra burden on your monthly income. Consequently, the problems like missing repayments, default, poor credit and even CCJ (County Court Judgement) occur in your financial life. Consolidating those debts assist you in re-controlling your finances and ensure a relaxed financial life.

If you are one of those who have poor credit scores due to excessive debts, we provide you with the right solution. Apply now for our debt consolidation loans for bad credit from a direct lender like us. You will get same-day approval and same-day fund disbursal to eliminate issues like overdrafts, multiple credit cards, and loan repayments.

How do Debt Consolidation Loans Work?


Debt consolidation is the method of moving all your debts into one single loan option. It will not add more burdens to your finances but relieve you from already existing ones. Getting these loans is not complicated at all, as only a few steps are required to complete.

Continue to read below to know what the application procedure is and how you qualify for the loans.



Process Eligibility
Complete an online form with mandatory details You must be living in the UK for the last 6 Years
Submit the form and wait for loan approval You should have a valid bank account
A soft credit check is done without leaving any search footprint on your credit file You must be improving in your recent financial commitments
Get the approval and fund disbursal on the same day You must be earning at least full-time or part-time income
Repay the loan till the loan term ends You are showing responsibility in enhancing your credit score

An important note: Getting debt consolidation loans is neither complicated nor impossible, especially with a low credit score. EasyPolicyLoans is always committed to affordable loan deals, and we do not offer loans beyond your repayment capacity. Borrowing funds more than your income capacity can badly affect your credit record.

Secured and Unsecured Debt Consolidation Loans

You can apply for personal loans for debt consolidation in two ways: Secured and Unsecured. Both these funding sources have their own targets and own specialities. As a borrower, you have to decide which one suits your personal ends and help you get out of the financial mess.

Secured debt consolidation loans are meant for longer financial purposes or hefty debts to merge but have to be pledged with a valuable asset. If the borrower fails to repay the loan, the lender has the right to possess that asset to compensate for the lost money.

On the other hand, unsecured debt consolidation loans for bad credit are more suitable for financial emergencies or smaller debts to consolidate. There is no collateral required, and approval comes based on the income capacity of the borrowers. However, these loans are not for long-term financial objectives.

As a responsible direct lender in the UK, we offer both these loan options for consolidating debts.

Secured Loans Unsecured Loans
Grab the chance of borrowing large amount to consolidate heavy debts An ideal loan option for merging small debts
Get the loans on lower interest rates A bit higher interest rates but the maximum chance of loan approval
Affordable monthly repayment Small monthly instalments and loan ends early
Get approval either on guarantor or collateral No collateral and no guarantor are required
Best way to improve the credit scores Soft credit check does not leave any search footprint on your credit profile

Advantages V/s Disadvantages of Debt Consolidation Loans

Consolidating debts seems the perfect solution for those who have suffered bad credit due to pending dues. It controls your finances and allows a smooth living. There are many more advantages of debt consolidation loans for bad credit and applied in an unsecured way.

Advantages of Debt Consolidation Loans

Here are the significant loan benefits that you get from us:

  • You can get rid of paying all the debts in the one go
  • You pay lower interest rate instead of paying multiple interest rates
  • You get to pay lower monthly instalments that are easy and help in improving credit scores
  • You pay only one single payment every month
  • You do not need any broker to approach the direct lender, as we are available online
  • You do not miss any repayment and preventing your score to go bad

Disadvantages of Debt Consolidation Loans

It is correct that consolidating debts is a nice solution, but it does have some risks involved. Given below are the disadvantages of debt consolidation loans:

  • If you have applied for a secured loan option, your asset may be at risk of losing if you default
  • You have to pay monthly instalments for a longer period that may put an extra burden on your finances
  • You might get trapped in more debts as you have to repay the fresh loan as well
  • If you have a poor credit score, you get the loan approval but on the higher interest rates
  • Missing repayments again can take your credit score from bad to worse

EasyPolicyLoans offers affordable loan options and does not make fake commitments of guaranteed debt consolidation loans. We are the responsible direct lender in the UK and approve loans on your repayment capacity.

Which Sorts of Debts Can I Consolidate?

You are supposed to get the best debt consolidation loans in the UK. It will consolidate all your debts into a single payment, but you should finalise the borrowed amount after proper consideration.

  • Prepare the list of your pending debts
  • How much you have paid
  • Interest rates
  • Repayment date of each month

Decide the borrowed amount based on the factors mentioned above. Once you have decided the amount and successfully get the loan approval, you can use the borrowed sum to pay off these sorts of debts:

  • Credit Card Payments
  • Personal Loans
  • Overdrafts
  • Payday Loans
  • Utility bill payments

With proper analysis of your repayment capacity, you should decide the borrowed amount and how much monthly instalment you can owe until the loan term ends. Unnecessary borrowing can impact your financial balance and credit score too.

Debt Consolidation Loans for Bad Credit in the UK

A bad credit score is the biggest obstacle when someone applies for loans. The traditional lenders are often strict towards the applications with poor credit score mentioned. Here, the role of direct lenders like us comes into the picture. We are flexible in our lending policy and ensure the right place to get debt consolidation loans for bad credit with no guarantor from a direct lender .

We offer loans on three specific features, such as:-

No Guarantor
You do not need any guarantor to submit the loan application. We want whenever you want to apply for a loan. You apply with no burden at all. Finding out the guarantor can be time-taking and does not suit during a financial emergency. Our no guarantor loans allow you to get the loans on instant decision and same-day fund transfer.

No Upfront Fee
As we said earlier, we do not want that you apply for the loans with an extra burden. Therefore, we offer you debt consolidation loans with full responsibility and do not charge any upfront charges. Only the interest rates that you need to pay, and these are the affordable ones.

Relaxed Credit Check
Many people search for debt consolidation loans with no credit check. We practice a soft credit check policy that will not impact the credit record of the borrower. Each loan deal is subject to a mandatory credit check that ensures manageable loan deals on your income capacity.

Can Debt Consolidation Help to Build My Credit Score?

Falling behind on any existing loan can suffer your credit score, and your name enters into the list of bad credit people. With such a blot to your credit profile, seeking loan approval from mainstream lenders becomes challenging. EasyPolicyLoans is a specialised private lender offering debt consolidation loans for bad credit on the online decision.

These loans help you to improve the credit scores if you sincerely make all the repayments. You could not find a much better opportunity than this to show that you are the responsible borrower. However, making timely repayments is compulsory because it will open up more lending doors in the future for you.

Avail only the affordable loan deals, which you can manage from your monthly income.

debt consolidation loan bad credit

Who offers the Best Bad Credit Debt Consolidation Loans?

EasyPolicyLoans…Yes, we offer you the best loans with an innovative approach towards lending. As a responsible credit provider in the UK, we can assist you in getting the ideal loan deal with the features like:

You can decide the amount to borrow according to your income capacity. We offer you flexible repayment plans such as 12 months, 18 months, 24 months and 36 months.

At here, we have special arrangements of debt consolidation loans for bad credit and non-homeowner. They get instant loan approval with no collateral to pledge. Moreover, we also accept applications on joint loans for debt consolidation.

We may consider no credit check but only if you are good in your recent financial commitments. Indeed, applying for debt consolidation loans here gives you many benefits. Of course, fee-free advice from our lending experts is always there for you. Contact us now if you have any query; otherwise, start applying for loans now.

Debt Consolidation Loans FAQs

Can I get independent advice about debt consolidation loans?

Yes, you will get independent advice on debt consolidation loans, as we have a team of qualified loan experts. They will guide you on every aspect of a loan deal so that you can follow the process without any error. Besides, you do not have to pay anything in the name of an advising fee.

How much could a debt consolidation loan cost?

A debt consolidation loan is much a cheaper option than any other personal loan. The interest rate is moderate, and there is no other fee involved. In fact, the interest rate is quite lower than the rates of your pending debts.

What risks come with bad debt consolidation loans?

Here are some possible risks involved with bad debt consolidation loans:-

  • You may trap into more debts with this loan;
  • You may lose your asset if you do not repay secured consolidation loans
  • These loans do not positively impact your credit record, as you have settled the debts, not closed them.

Is it a good idea to consolidate your debt?

Indeed, consolidating debts is a good idea because you can clear multiple debts in one attempt. You find planning for your monthly budget more convenient as you have paid all dues on time. In addition, you owe the advantage of a lower interest rate as well.

What happens if I cannot make my repayments?

Not making the repayments on time can hurt you a lot. It puts significant damage to your credit score and keeps on increasing your financial burden. Therefore, you should not delay the repayments and try hard to make them on time.

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