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Reduce all your current interest rates and
consolidate all your existing creditor.
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What is a Consolidation Loan?
Consolidation Loan FAQs
Do I need a good credit rating to apply for a consolidation loan?
The problem with a consolidation loan is that you will need a good credit rating.
consolidation loan are offered to people with bad credit but you will have to have demonstrated an
ability to both afford and have the discipline to repay a consolidation loan.
If you have a bad credit rating then maybe the option of a
debt management plan,
IVA or
Bankruptcy would be more beneficial.
What kind of rate should I expect?
Consolidation loan rates will vary from lender
to lender and will largely depend on your credit rating and financial health.
Obviously, if your credit rating is not up to scratch, you will represent more of a risk to lenders and that will be reflected
in the Annual Percentage Rate (APR) on your loan.
How fast can I get debt free with a consolidation loan?
This greatly depends on the size of your loan and the term length. The higher your monthly payment, the sooner you can pay off your loan.
This will also save you money by not incurring as much interest.
Do I have to own a house to get a consolidation loan?
No. You can get an unsecured consolidation loan even if you don't own property or if you don't want
to borrow against your home. If you choose that path you will likely pay higher interest rates than with that of a secured loan.
What is the difference between consolidation mortgages and consolidation loans?
When you get a consolidation mortgage you will end up taking out a new mortgage that is big enough to pay off your
unsecured debts and your mortgage. This means you will end up only having one payment to make each month. A consolidation loan
has nothing to do with your mortgage and you will just be borrowing enough to pay off your unsecured debts.
Will creditor harassment stop when I get a debt consolidation loan?
Yes. After you get a consolidation loan you may get calls for
a short period of time but you can direct those calls to the consolidation loan company to deal with.
This will end any creditor harassment that you have been experiencing..
Can I contribute extra money to my consolidation repayment?
You can contribute as much as you want and it is recommended that you try to pay it back as soon as you
can, as the interest you are paying will add up over time. Even a small extra amount will save you money in the long run.
Is a consolidation loan my only debt solution?
No there are other alternatives available such as
Debt Management Plans,
Individual Voluntary Arrangements
(IVA), A
Protected Trust Deed for Scottish residence and
Bankruptcy
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