Opening Hours
Mon – Fri 9AM – 8PM

Get Free Expert Debt Advice Today

0800 002 9051

Helping You Become Debt Free
How to get debt consolidation loan with poor credit score

How to get debt consolidation loan with poor credit score

After many combined years in this business, we’ve become adept at understanding our clients’ debt management problems. So please allow us to take an educated guess as to where you are right now… Your debts grew and grew. At first, it was all under control. Then you stopped crunching the numbers and adding up how much you owed. Then came the fees, the late payment charges – the letters, phone calls and home visits. Now, things are serious. You may be unable to afford essentials, and too frightened to open the post. If all the above sounds right, you drastically need a debt consolidation solution. But the nasty catch 22 of debt means that your financial circumstances will stop you from accessing many traditional debt consolidation loans because of your bad credit rating. If that also sounds right, read on to learn about debt consolidation solutions for those with poor credit. Debt consolidation as a debt management plan Debt consolidation is an effective form of debt management, offering the following advantages: Debt consolidation can reduce the amount of money you’re paying in interest and late payment fees You’re able to roll all your debts into a single debt consolidation loan with a single repayment each month, which will help with your budgeting You may be able to spread your debt repayments over a longer period, thereby reducing your outgoings How to secure a debt consolidation loan (even if you have a bad credit rating) If you’ve exhausted all avenues of mainstream debt consolidation loans (such as personal loans from high street lenders), you may feel backed into a corner....
Top 6 Proven ways to consolidate your debt

Top 6 Proven ways to consolidate your debt

When you’re in the midst of debt, it’s often impossible to have hope of a debt free future. Endless letters, phone calls, knocks on the door. You don’t even want to think about how much you might owe. We want to reassure you – if you take the right steps and choose a suitable debt consolidation solution, there is a way to work your way out of your debt problem. In this guide we walk through six proven techniques for debt consolidation – for debt problems in the range of hundreds, up to tens of thousands of pounds. Proven tactic one: Apply for an overdraft An overdraft could be a suitable solution for debt consolidation if you have a reasonably low level of debt in the range of hundreds, or possibly thousands, of pounds as well as a average or above credit score. Proven tactic two: Apply for a personal loan A personal loan is perhaps the most ideal debt consolidation solution, as they tend to offer the lowest APR and the most favourable lending terms. However personal loans also require a relatively healthy credit score. For those with poorer credit ratings, they face either a declined application, or an approved personal loan with a high interest rate. Proven tactic three: Apply for a secured loan If you can’t get approved for a personal loan, and an overdraft won’t cover your debts, you may want to consider a secured loan. Secured loans put up some form of asset as an insurance against the debt. Should you fail to keep up with your repayments, the lender has the peace of...
8 Mistakes people make when paying off debt

8 Mistakes people make when paying off debt

You made the brave decision to get to grips with just how much you owe your creditors, and have now finally committed to paying off debt, no matter how long it takes. Go you. The next step is to make sure that you’re well aware of the common mistakes that many in your situation make. Paying off debt mistake number one: You repay all your debts equally If you’re splitting your spare cash between all your debts equally, stop. Take a step back and create a list of your debts alongside the extra fees and interest rates you’re being charged. Whichever comes out the costliest should be the one you overpay on, while you repay only the minimum on the remaining debts. By focusing on repaying one debt at a time you also get the satisfaction of seeing your financial situation approve, bit by bit. This is known as the snowball method of debt repayment. Paying off debt mistake number two: You have no plan… none at all “Fail to plan, and you plan to fail” – it’s somewhat of an overused saying, but when it comes to tackling your debts it couldn’t be truer. Start by listing out your debts and adding up what you owe. From here you may want to look into a debt consolidation loan (read our guide on this topic: 5 Debt consolidation mistakes and how to avoid them). Paying off debt mistake number three: You haven’t changed your spending habits If you want to repay your debts as quickly as possible there’s nothing else for it – you need to make compromises. That...
Can your debt consolidation loan get approved with bad credit?

Can your debt consolidation loan get approved with bad credit?

So, you have a bad credit rating? Firstly, don’t panic (we know, easier said than done, right?). You’re among many Brits who’ve somehow made a misstep (or many) with their finances, and in all but the most serious of instances there will be a debt solution out there. Read on to find out how you can still secure a debt consolidation loan with bad credit. Debt consolidation loans for bad credit Before we work through some tips for the best possible chance of securing a debt consolidation loan for bad credit, let’s first make sure that this financial manoeuvre is right for you. The pros of debt consolidation for bad credit All of your debts will be rolled into one – allowing for easier financial management.Your credit rating could improve if it helps you keep up with all your repayments.You may receive a lower interest rate than what you’re currently paying.You could avoid paying ongoing late or missed payment fees. The cons of debt consolidation for bad credit There’s no guarantee that you’ll secure a better interest rate.You may also face early repayment fees, depending on the types of credit products that you’ll be consolidating.You may end up paying more if you choose a loan that runs for a longer time period than your current arrangements. Debt consolidation for bad credit – Our top tips Debt consolidation loans are designed to restructure your finances, so it should come as no surprise that there are certain providers of such loans that willingly accept people with a less than perfect credit history. Nevertheless, you’re going to be on the backfoot and...
5 Debt consolidation mistakes and how to avoid them

5 Debt consolidation mistakes and how to avoid them

Debt consolidation is almost always a savvy financial move. But with that said it comes with several missteps that are easy to make. Here’s what to avoid if you want your debt consolidation plan to pay off. 1) DO NOT even THINK about leaving your credit cards open (not even one) This is the most common mistake that debtors make and we can’t stress this enough – do not, under any circumstances, leave a credit card account open for use. There’s a reason that you got into debt, and the same temptations will remain. Remember – you’ve been approved for as debt consolidation loan this time, but next time – with bigger debts – you may not be as fortunate. If you must leave a card open, consider leaving it with a trusted friend or family member, and restrict the credit limit to under £500. 2) DON’T opt for lending that runs over a longer period than necessary When researching your loan options, it can be easy to opt for a solution that runs for a longer duration and offers the lowest repayment. However, it’s well worth paying attention to how much this longer time period is going to cost you in terms of pence and pounds. For example, if you borrowed £10,000 over 3 years at 3% then the loan repayments would be £290.63, and the total interest repayable would be £462.68. However if you chose the longest term of 5 years the repayments would drop to £179.50, but the interest would increase to more than £770 total repayable. This means that you won’t only pay more interest,...
How we use cookies   X