If you have multiple debts you need to repay each month and want to consolidate into one simple loan amount, a debt consolidation loan can be an ideal solution. Here at Payday Loans Net, whilst we can’t provide a traditional debt consolidation loan agreement, we can offer unsecured borrowing up to £1000 for the right applicant. Ideal to spread the costs of a short term financial issue, you can apply in minutes and get the loan you need the same day.
Start an application straight away and apply for a loan for between 3 – 6 months for a loan amount between £300 – £1,000.
What are Debt Consolidation Loans for Bad Credit in the UK?
A debt consolidation loan is a type of instalment loan that is designed to cover the costs of any existing debts you may have. This allows the successful applicant to apply for an amount that covers all outstanding balances of their creditors, and if successful, then pay each agreement off in full. This will then leave only the debt consolidation loan agreement to be repaid, with you going from having multiple creditors to just one. For example, if someone has a loan balance of £2,000 and a credit card balance of £1,500, they would be looking for a debt consolidation of at least £3,500. The best debt consolidation loans will enable applicants to reduce their monthly outgoings to creditors and have just one affordable monthly amount.
There are pros and cons to having an unsecured debt consolidation loan and you should think carefully before applying for one. Whilst it can turn multiple creditors into one, this can mean that you may be paying a higher amount each month to clear the debt quicker, or extending how long you keep hold of the debt to achieve low, affordable repayments. You may even pay more back than you originally owed due to added interest applied to your new debt consolidation agreement.
How We Offer Alternatives to Debt Consolidation Loans
Whilst debt consolidation for bad credit can help to solve the issue of multiple repayments on different dates each month, it’s not the only option available. You should consider other types of loans that may help such as a personal loan or guarantor loan. There are many different loans suitable depending on your circumstances. How our loans differ is that they are designed for short term use. If you require a loan for more than £1,000, debt consolidation loans in the UK may be more ideal for substantial amounts of debt. If your financial issues can be resolved without consolidating and you can afford repayments for between 3 – 6 months, our short terms loans may be a better fit for you.
At Payday Loans Net, we are a responsible lender and are authorised by the Financial Conduct Authority (FCA) to provide loans in the UK. Our loans are not designed to cover long term financial issues and should only be applied for if you cannot resolve your circumstances through other means. You should always look to resolve your short term, unexpected or emergency expense through savings or available credit you already have first. If you are someone with a poor credit history, we may still be able to help you as long as you can afford the loan.
Reasons for Needing a Debt Consolidation Loan
The best debt consolidation loans in the UK are searched for by applicants for many reasons, with the number one being reducing multiple debts. Here are some of the reasons for applying to consolidate debt:
Reduce Monthly Outgoings – those that have multiple repayments they are struggling to maintain each month will seek debt consolidation loans in the UK. They may have repayments leave their account on different dates each month, so consolidating will turn this into one and ideally be for a lower total. However, this could mean taking out a loan for much longer to keep repayments affordable.
Pay off High-Interest Debts – some people may have multiple debts with credit card providers or other forms of high-interest borrowing. As the interest on these can quickly mount up, especially when repayments are being missed, consolidating can help to settle these debts and have just one agreement. Although this can help, a debt consolidation will also have interest applied, meaning the total debt is higher. This has to be carefully considered especially if the debt is already quite large.
Easily Manage their Debts – it can be that applicants don’t want to have to juggle multiple creditors each month and want an easier way to manage their finances. Whilst changing multiple debts into one means less to think about each month, this can mean paying a much larger amount each month instead. It’s also another loan agreement to ensure is maintained each month, so if they were struggling to repay on time before, applicants would need to quickly ensure that doesn’t happen again.
Debt Consolidation Loan FAQs
Are Debt Consolidation Loans for Poor Credit Guaranteed?
At Payday Loans Net, we can only guarantee a decision on a direct loan after full credit and affordability checks have been complete. You should only use a debt consolidation if it follows the same approach to responsible lending.
How Quickly Will I Receive the Funds?
What are the Best Debt Consolidation Loans?
Why Should I Choose Unsecured Debt Consolidation Loans?
Apply Online Now for an Alternative to Debt Consolidation Loans in the UK
There are lots to consider when looking at debt consolidation loans for bad credit in the UK, so it’s best to stay informed of the options you have. If you want to apply for a short term option instead, click apply now and start your application today.
If you are experiencing financial difficulties and are looking for further information to help, please visit Money Helper for impartial advice.
Debt Consolidation Loans in the UK
Having multiple creditors to repay can be difficult, so that’s where a debt consolidation loan can help. We don’t provide debt consolidation options, but if you are in need of a short term loan to cover an emergency expense quickly, at Payday Loans Net we can look to help you. To be eligible to apply, you will need to:
- Reside in the UK
- Have a UK bank account
- Have a steady income
If you can meet the above and you are also at least 18 years of age, you can apply online today and get a quick decision. We’ll need to assess your affordability and perform credit checks to ensure you are not in current financial difficulties. If successful, you could have the funds in your bank account to use on the same day.