What are Debt Consolidation Loans?
Debt consolidation loans are financial solutions that concentrate all your debts into one debt, and the borrower pays only one loan instalment at a fixed rate. The loans are majorly used to consolidate the short-term debts.
Personalised Deal Recommendations
We design loan deals according to your financial conditions, and you can choose the one with affordable rates and small instalments.
Individualised Repayment options
The repayment plans are always according to your repaying capacity. No generalized rules are applicable to borrowers.
Whatever information you provide, it is always safe with us. All our online procedures are secured, and we never forward your details.
How Much Debt Can I Cover with Debt Consolidation Loans?
You can cover up to 70% to 80% of debt through debt consolidation
The actual benefit of debt consolidation can be explored only if it covers a considerable amount of obligations you bear. We provide maximum coverage for your pending debts through a practical loan deal that can suit your budget. It gives the required relief to the customers and clears the way to move on in financial life.
Example – James Brown has a pending debt of £15000. Through consolidation, he can settle up to 80% of this debt amount. Here is the calculation.
£15000 x 80/100 = £12000
- We first scrutinise your credit report to find out the actual situation of your debts.
- Our expert team asks you some relatable questions to design a suitable loan deal.
- Then we assign a relationship manager that assists you throughout the procedure.
- We put a final deal and leave the final decision of selection at your discretion.
- Once you accept the offer, we apply for debt consolidation and easy repayment starts.
Conditions on what percentage of cover you can qualify for
What exact percentage you can write off depends on your financial records and capacity. The procedure to apply and get approved is rational and according to the lending norms of the industry. No ‘one size fits all’ policy works in debt consolidation because every individual has a different debt situation.
- The reason we apply customisation is that you get what you can pay off.
- You should know that what you get can be different from what you expect.
- We aim to cover 80% of our debts. The final decision is only on your circumstances.
- The loans have no obligation. In that case, your repay capacity is the prime factor.
Two ways to consolidate your debt
You can consolidate your debts in two ways. The final selection of one of the methods depends on your debt circumstances and the capacity to make the repayments. The two types depend on the kind of debts that cause imbalance and dominate the financial life.
- Debt consolidation loans – This type turns all types of debts, such as personal loans, credit cards, bills, education loans etc., into one loan with one instalment for a fixed time period.
- Balance transfer credit card – It is used when one wants to consolidate multiple credit card debts. This type gathers all your credit card pending payments into one credit card.
Both types are popular, and we receive applications for them. Some want to get rid of the various types of debts, while some are annoyed by their scattered credit card obligations. Both versions are available to the borrowers of debt consolidation loans for poor credit people.
Do You Provide Debt Consolidation Loans for Bad Credit People?
Yes, we do that. As a matter of fact, debt consolidation loans relate conveniently to poor credit situations. After all, this is why people typically consolidate their debts. Either they want to avoid a drop in credit rating due to multiple instalments for many debts, or they have bad credit and need to improve. A considerable number of borrowers who come to us for the solution have poor credit score issues. The features of our debt consolidation loans for bad credit in the UK can help you notice the benefits you get.
- No additional cost for poor credit borrowers – Before you apply, we know your anxiety and uncertainty on charges and fee. We have fair lending policies that are democratic in approach and follow the industry norms. As the regulatory authorities mention, we as a lender do not charge any extra fee to process the application of a borrower with poor credit situation.
- Financial behaviour of last 180 days is important - To provide you with the best possible deal with affordable rates and repayments, it is important to scrutinise your financial habits in the last 180 days. It is equivalent to 6 months and reflects your latest capacity in making repayment of debts and bills. This information helps a lot to decide what type of debt consolidation deal is useful.
- The application process has no discrimination – Yes, it is as real as an established fact. You face no discrimination or delay in the application process just because of the poor credit situation. We have a speedy process, and that is applicable for all borrowers, whether with good, fair or poor credit situations. Our existing customers who survived poor credit situations can prove that.
What are the Benefits of Debt Consolidation Loans?
After all the detailed information, it is time to focus on the exact benefits of debt consolidation loans. With practical methods, we make the borrowing journey of the borrowers smoother and predictable. In many years, we have served thousands of customers and have gained depth knowledge on how to provide a relatable solution to the solution seekers.
- Cover up to 80% of debts - If you get a big cover, your financial life can change in a positive direction. It gives the ultimate feel of security, and you can move on to take new decisions in personal finances. 80% cover is a considerable figure and can bring a positive change.
- 100% paperless - After all, direct lending is destined for instant financial services, and hefty documentation is not suitable for the purpose. From the application to funding disbursement, everything happens virtually, including the online verification.
- No location bias - We do not consider any location as more or less profitable. Direct lending is more about service than a self-centred business. London or Leeds or any rural area is a reliable choice if you look for consolidation loans by direct lender.
- The minimum age is 18 - We believe that young age is more prone to debt mess. With a lower minimum age policy, we widen our beneficiary base. It is necessary to spread the help to support the economy to have financially happy people.
- 24x7 availability- We do not care whenever you apply because our team is available round-the-clock to serve the borrowers. The money gets transferred within 24 to 48 hours, which supports the financial concerns of the people at the right time.
- Higher approval rate - Do you know, we approve 99% of debt consolidation loan applications? It covers almost everyone who wants support. It is the reason that we provide debt consolidation loans on the instant decision. We want to cover a huge number of borrowers.
Why Choose Us
As we follow the rational lending process, we have rational causes to make you believe and that this platform is reliable to consolidate debts. Here are some reasons that should be left at your discretion to read and decide why you should choose us.
- Within your geographic location – Our reach across the UK facilitates services within your geographical boundaries. As we have customer-friendly services available, loan availability is always around you. By the way, we can also provide doorstep services if required. At Loanorganisation, we have no location discrimination. You can know when you will apply for the required solution.
- No guarantor obligation – Apply for a debt consolidation loan with no guarantor and borrow funds on your financial capacity. It can be proved through employment stability and income consistency in the last 6 months. Then fund disbursement is the final formality to occur. For faster debt settlement, keeping the procedures less bulky and no obligation condition is an idol for this purpose.
- Advance repayment schedule - Before you make a final decision on us, you can obtain a repayment plan in advance. Check if that payment schedule is suitable for your budget or not. In case of any concern, we are always ready to tailor it. These features of loans make the borrower secured his final decision. In fact, during the tenure, we can tailor the repayment schedule.
- Unsecured loan offers – The unsecured loans with bad credit, fair credit, and good credit show our liberal policies. Current repaying capacity is always the significant factor for us to approve your loan. Credit rating can be a factor, but unlike traditional ways of lending, we never leave our final decision on it. Show us a stable current income, and we can immediately send money.
- We suggest ways to avoid mistake repetition – When we scrutinise your credit records, the process reveals the financial mistakes you have made. The responsible ways that caused multiple obligations to need to be removed. Our expert team of counsellors suggests practical ways to avoid money mistakes next time and attain peace.
One-page Application Process
To fulfil our aim of speedy loan approval, we have a one-page application that takes a few minutes to fill.
Instant Lending Decision
Within 10 minutes of your application submission, we give you an approval decision, which is vital for timely support.
Personal Relationship Manager
We assign you a relationship manager after approval. He stays with you throughout the tenure and solves issues.
Improve Credit Score
When people with poor credit ratings consolidate debts on affordable repayments, they improve their credit rating.
How are unsecured debt consolidation loans dissimilar to secured ones?
The unsecured and secured debt consolidation loans are completely different with different terms and conditions. With the help of rational points, you can understand the difference between the two.
Unsecured debt consolidation loans
- These are short-term loans with a smaller maximum loan amount limit. Minimum £1000 to £15000.
- No collateral obligation because these loans cover only short-term debts that can be settled on current repaying capacity.
- The interest rates are slightly higher due to no obligation conditions and instant approval, followed by immediate money transfer.
Secured debt consolidation loans
- These are the long-term loans that demand collateral and a higher maximum limit. Minimum £1000 to maximum £50,000.
- The borrower needs to provide security to qualify for funds. The loans cover the big debts and also more number of debts.
- The interest rate is low because the repayments are backed up by the security that is equal to at least 80% of borrowed money.
Are debt consolidation and debt management similar?
Both debt consolidation and debt management have the same purpose. They help the customers arrange the debts and prevent the worst-case scenario. But the methods and nature of both the financial solutions are different. We can help you understand better.
- Debt consolidation loans – The consolidation loans with no guarantor accumulate multiple debts or credit cards into one loan or credit card. The borrower then pays one instalment at a fixed rate. To pay off many debts you mix all of them in one loan.
- Debt management plan – It is not like consolidation loans as it only offers some ease in your repayments. The plan provider can talk to your creditors to reduce the rates. The debt management plan is all about making repayments easier.
Role of credit score
- Debt consolidation loans – As in consolidation, the lender merges all loans, the person should have a satisfying credit score status. However, bad credit people can also avail themselves of it, but poor credit with consistently missed payments in recent months is a problem.
- Debt management plan – In a debt management plan, credit score has no considerable role because you are not taking a new loan. Unlike the consolidation process, in this method, the solution provider only makes your existing repayments affordable.
- Debt consolidation loans – Repayments of consolidated loans are made by the borrowers according to the decided repayment schedule. In case of any difficulty, the repayment plan can be changed according to current financial conditions.
- Debt management plan – In this method, you can pay in two ways. Either you can pay the instalments on your own, or the solution provider can make repayments on your behalf. You pay a certain amount to the company, which goes to the creditors.
Usually, debt consolidation loans on the instant decision are more favourable in case of multiple debts. They give the most significant benefit in the form of one instalment on a fixed rate of interest. In the case of the debt management plan, even if the creditors reduce the rates, it does not make a big difference.
Simpler Application Process in 3 Steps
Look at how we work on the application process to ensure the on-time debt consolidation service without any bias of credit score or employment status. Once again, the complete procedure depends on the current repaying capacity. Make sure you work on it and get instant approval after application.
The application form available on our website is small and needs basic financial and personal information.
Get approval decision
Within a few minutes of submission of the form, we send the lending decision. It is never more than 10 minutes.
Receive funds once approved
Once approved, the funds you applied for reach your bank account. For this, it is necessary to provide correct information.
Loanorganisation is known for its fair lending decisions and speedy financial solutions. With consistent efforts to offer the required financial assistance to the lender, we make sure that the borrowers get the desired solution. We have gained insight into the industry trends and financial circumstances a person can face in a particular condition. It is the reason that the provided consolidation loans to bad credit, fair credit or good credit people are always backed up by relatable solutions. The customers get to know what wrong treatment they give to their personal finances and how they can improve it. Rest can be explained only when you reach us.
Apply now and take the realistic experience on how things work here.
What do I need to apply for debt consolidation loans?
You need only basic documents and details to apply for the consolidation loans –
- Income proof of last 6 months
- Bank statement of last 6 months
- Income from same or source in last 6 months
- Debt and bill payment records of the last 180 days.
How can I assess the cost of debt consolidation loans and repayments?
The advanced loan calculator and our team of experts help you make a rational decision. You can know about the total and monthly costs of the consolidation loans. However, with the customisation feature, you always get an affordable deal.
I lost my job during the covid lockdown period. Can I apply for debt consolidation?
As we always mention, any borrower with a stable current repaying capacity can apply for the loans. If you have another earning source and the income is consistent, you can qualify for debt consolidation loans for unemployed people.
Is a consolidation loan suitable for me?
This is something that you need to decide, but we suggest that if you have multiple debts or pending credit card obligations, debt consolidation loans are more useful. If you have only a few number of obligations, debt management plan might work.
What if I face any difficulty in following the repayment schedule?
You can inform us on time, and we will change the repayment plan according to your current financial circumstances. We change the repayment plan twice in loan tenure. The essential condition is that you inform us at the right time because then only we can help.
What are the alternatives to debt consolidation loans?
The alternatives to debt consolidation loans are not many. They give you funds and consolidate the other debts, making them more affordable with the lower rate and one instalment. The few options are debt management plan and remortgage if your total debt amount is big and also you want to borrow extra for some financial purposes.