What are Debt Consolidation Loans?

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 - Debt Consolidation Loans on Instant Decision Debt Consolidation Loans 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 for Debt Consolidation Unsecured Loans for Debt Consolidation
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 and 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:

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:

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:

  • 3-minute loan application
  • 60 seconds credit check
  • 15 minutes loan approval
  • 2 minutes fund disbursal

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

Is debt consolidation right for you?

Debt consolidation is a useful option when you have the burden of excessive debts on your finances. These debts may be of utility bills, credit card payments, or loan repayments.

If you have the option of a debt consolidation loan, you can merge all these debts into a single payment and get the benefit of low-interest rates.

Do consolidation loans hurt your credit score?

There are rare chances that these loans hurt your credit rating. They help you to improve the scores as the repayment is single and easy to manage from the monthly income.

What’s the difference between secured and unsecured consolidation loans?

The difference between secured and unsecured debt consolidation loans are as such:

Secured debt consolidation loans:

  • These are perfect for merging cumbersome debts related to personal and business activities.
  • Providing collateral is mandatory that should be equal to the value of borrowed amount.
  • A large amount for a more extended period can be availed with these funding sources.
  • Interest rates remain on the lower side.

Unsecured Debt Consolidation Loans

  • There is no need to pledge any asset as the loan collateral.
  • These options are suitable for emergency debt mergers.
  • Interest rates may slightly be on the higher side.
  • These are ideal for smaller debts need for an urgent consolidation.

Can you get an unsecured debt consolidation loan?

Yes, you can anytime avail the services of an unsecured debt consolidation loan. The direct lenders like us do not mind your inability not to secure the loan. We allow a smooth loan approval that will help you consolidate all your pending dues in one go.

How long can I borrow with a debt consolidation loan?

It depends upon the pending debts and your need for the borrowed amount. You can avail the loans for one year or a maximum of five years. We recommend individual circumstances while decided the loan terms.

How can I get the cheapest debt consolidation loan?

There are various ways to get loans on cheapest rates:

  • Choose the reliable direct lender following flexible repayments
  • Keep your credit score improving day by day with proper management
  • If possible arrange a guarantor to repay the amount on time
  • If you want the substantial amount to borrow, then pledge the loan with collateral

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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