Put simply, consolidation involves paying off your existing debts with one single loan, leaving you with one monthly repayment. Our loans could help.
If you’ve got balances on credit cards, unsecured loans, store cards, overdrafts or even a secured loan, you will be making a number of different payments normally at different times of the month at a number of different rates – a consolidation loan could help you consolidate your debts into one manageable monthly repayment.
A debt consolidation loan offers a number of different features:
A debt consolidation loan will help you take control of your finances – allowing you to reduce your monthly outgoings and rebuild your credit rating. Our expert advisers will help you review your credit profile, short and long term goals and talk you through all available options.
Our experts will help you go through your finance options and what best suits your circumstance.
A typical household has over £13,500 of unsecured debit – lenders will generally charge around 3% monthly of an outstanding balance meaning that on top of your mortgage payment you could be paying over £400 on a number of different accounts – such as store cards, online mail order accounts and credit cards.
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.
In December 2017 we helped Mrs Goode consolidate over £15,000 worth of high interest credit cards and loans – before we spoke to Mrs Goode she had 6 different payments going out of her bank account every month on top of her mortgage payment – after reviewing and discussing all the options available we helped our client reduce her monthly outgoings from £320 to £168 giving her a monthly saving of £152.
Representative example: If you borrow £10,000 over 10 years at an annual interest rate of 6.62%, you would make 120 payments of £132.37 per month. The total amount repayable will be £15,884.15 (This includes a lender fee of £595 and a broker fee of £1000 which have been added to the loan). Total charge for credit will be £4289.15. Overall cost for comparison is 10.03% APRC (variable) representative. The Personal Finance Centre is a leading broker and not a lender.
Rates from 3.24% APR. We have a range of plans and rates allowing us to help customers with a range of credit problems.
Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.
If you are thinking of consolidating existing borrowing you should be aware that you may be extending the term of the debt and increasing the total amount you repay.