DEBT CONSOLIDATION LOANS

What is a Debt Consolidation Loan?

Debt Consolidation loans are a type of loan designed to help those who are struggling with a number of payments and debts. The individual may have a lot of payments to make each month and at all different times and all at different interest rates. Effectively the loan works as follows - the debt consolidation loan is used to pay off all the customer's debtors, loans and payments. Therefore the customer consolidates all his debts into one payment which is made monthly. The loan is paid back at the same time every month and usually at a low APR – making it a solution for debt problems and managing your payments.

Do I need a Debt Consolidation Loan?

If you are finding yourself under a large amount of debt and are both struggling to pay them back and manage the number of payments than a debt consolidation loan may be a solution to help you. Most debt consolidation companies can also advise you on what is best – if your debts are too severe you may be advised to apply for an IVA

What Payments do Debt Consolidation loans cover?

A debt consolidation loan can be used to cover just about any outstanding debt – bank overdrafts, excessive credit card bills, rent or mortgage arrears, other secured or unsecured loans, bills, hire purchase debts and so on. If you apply successfully, the money will be paid into your account – so it is up to you to pay off the loans once you receive the funds.

Can I Get a Debt Consolidation Loan with Bad Credit Rating?

Yes, you can apply and get a Debt Consolidation loan even if you have a bad credit rating – or whatever your credit rating a solution can usually be found. You can even apply if you've had CCJ's (county court judgments) against you or an IVA.

Homeowner and Tenant / Unsecured Consolidation Loans

If you own your own home, it will be easier for you to get a debt consolidation loan and usually the amount you can borrow will be higher – you can borrow amounts of up to £100,000. Even if you are a tenant you will still be able to get a consolidation loan though you will probably be able to borrow a maximum of around £25,000.

Debt Consolidation Online Application

You can apply for a debt consolidation loan online – just get on the internet, fill in the application form and then you will be contacted by an advisor.

Compare Debt Consolidation Loans

At Which Way To Pay you can compare a number of debt consolidation loan lenders. Including 123 Debt Solutions, Shakespeare Finance, Consolidate Your Credit, RiseAboveFinance Debt Management.