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.


APPLY NOW

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.


APPLY NOW

Debt Consolidation Loan FAQs


Are Debt Consolidation Loans for Poor Credit Guaranteed?

No lender can guarantee that you will be approved for a debt consolidation loan, so if you do find any that offer guaranteed approval, you should be wary. Using only trusted sources that are FCA approved will ensure you stay protected whilst finding lenders online. If you are someone looking for debt consolidation loan bad credit direct lenders, you will want to check they have their FCA authorisation number published on their website. You can also search on the FCA register for the lender if you are still unsure.
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?

A debt consolidation loan can vary how quickly it will pay out, especially if it is for a high value. Whilst some may provide a same day decision, you may not receive the funds until a few days later. This will vary between lenders so should be kept in mind if you are wanting funds quickly. With our short term borrowing, we can provide quick loans that can be applied for, approved, and paid into your bank account the same day. As we know you may have an emergency to resolve, we want to provide the cash you need as quickly as possible. You can apply through us at anytime of day and night, and we’ll process as soon as we can. Please note, how quickly you receive the loan will depend on your bank accepting faster payments and the time of day you apply.

What are the Best Debt Consolidation Loans?

The best debt consolidation loans in the UK will depend on a range of factors as they will all charge interest on the value of the loan and offer different terms. You should look for lenders that offer the loan you want at the terms you can afford and are happy to maintain. You can easily compare different lenders online and use a loan calculator to see the interest charge and any admin fees applicable. This is the same when it comes to applying for flexible loans through us, as you can see how much an approximate loan will cost before applying. We don’t charge any fees to apply either, so you don’t have to worry about any hidden costs.

Why Should I Choose Unsecured Debt Consolidation Loans?

You may have found lenders offering the amount you need to consolidate but require collateral to guarantee the loan. This form of secured loan would mean putting a valuable asset on the credit agreement against the amount you want to borrow. The problem with this is, if you ever get into financial difficulty, the named asset will be used to repay the loan. Choosing an unsecured loan will avoid having to do this and means your assets will remain separate from the consolidation. Our short term options are also unsecured, so you can apply without needing a guarantor either.

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.

Representative example

Total amount of credit: £500
Duration of the agreement: 4 months
Repayment total: £863.24
Interest is fixed at rate of 270.10% per year – 0.8% interest per day | Representative 997% APR
£215.81
Instalment 1
£215.81
Instalment 2 & 3
£215.81
Instalment 4