Apply for a loan of up to £25,000*
Get Your Cash!
Debt Consolidation Loans
Most experts advise to take one loan at a time, however, there are instances when a person would apply for multiple loans. As a result, the person may struggle to repay loans back, considering the differences in the interest rates, policies, and a lot more. When such thing occurs, one of the best solutions is to acquire another loan – a debt consolidation loan.
You’re already having a hard time with the several loans you have and yet, you have to take another loan? Debt consolidation loans are loans especially created to help you deal with your outstanding debts. It merges all the loans into one single debt, therefore, making it easier to settle. This allows you to get rid of different lenders and deal with only one instead. Another advantage is that its interest rate is cheaper than all the other loans you were previously paying. It can effectively improve your monthly outflow.
Secured And Unsecured Loans
This type of loan provides many advantages to its borrowers. Loan seekers have the option to choose between secured and unsecured loans. If you’re looking for a cheaper loan, you can do it by pledging collateral. The asset will work as a security against the loan, therefore, the lender is confident that they can have the money back in case of default.
Meanwhile, if the borrower is not comfortable with the idea of losing his asset, he can opt for unsecured loans. Unlike the secured type, there’s no collateral involved, therefore, he is qualified to even if he’s not a homeowner. If things went downhill, he can walk away without risking his home, car, gadget, jewelry, or stocks. For the lenders, this notion is risky that’s why they charge a higher interest rate to safeguard the loan.
Whatever loan option you choose, remember that there’s a consequence if you default or even delay the payment. Lenders will report your actions to the credit bureau and as a result, you will have a poor credit remark. This is not a good thing especially if you always use loans; bad credit borrowers are usually declined, therefore, it will be difficult to attain a new line of credit. In addition, the lender can take legal actions against you.
Can You Take Debt Consolidation Loans Even If You Have Bad Credit?
As mentioned, it’s hard for a bad credit borrower to obtain loans, however, there are lenders who are willing to entertain their application. So even with the poor credit remarks, it won’t be too challenging for you to settle all your debts using one type of loan. It works almost the same – the monthly payment is cheap but the interest rates are higher. Some lenders even charge an upfront fee which is about 10% of the loan amount. Therefore, before applying for this loan, it’s best to have your credit checked. Ensure that your credit report contains accurate information and in case of discrepancies, report it immediately. Also, it’s best to settle smaller debts and refrain from borrowing again. Moreover, prioritize repaying your loan rather than spending your money on unnecessary things.
Our Lending Panel
We have relationships with the best institutions in the financial market, so we can bring you the highest quality loans around.