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Debt Consolidation Loans

Debt consolidation loans are designed to bring together your existing credits and loans into a single monthly payment, at one interest rate.

Debt consolidation loans are used to combine your outstanding credit into one manageable payment plan, potentially making it easier to take back control of your finances. Borrowing in this way means you have one single payment each month, potentially lowering monthly repayments and making it easier to keep track of what you owe and who you need to pay. However, before applying for a debt consolidation loan, it’s important to thoroughly research your options – ensure your borrowing will be affordable and always check how this type of borrowing will impact your interest payments and credit score.
  • A type of loan secured against property or another asset – which could be at risk if you do not keep up repayments

  • A debt consolidation loan is used to pay off other debts so you only make one monthly repayment

  • It will help reduce monthly outgoings and may lower the interest rate payable on your debts

  • Consolidating existing borrowing could mean you extend the term of your debt and/or increase the total you repay

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What are debt consolidation loans?

A debt consolidation loan is typically used to pay off all existing loan or debt amounts and replace them with a single monthly repayment. With fewer repayments to make, you may also benefit by paying only one interest rate, potentially saving you money in the end if the term of the debt isn’t extended.

Benefits of choosing a debt consolidation loan

Taking out a debt consolidation saves you juggling several individual repayments. They can sometimes mean you pay less than short-term loans and are easier to monitor than credit card debts, which have changing interest-free periods.

Disadvantages of choosing a debt consolidation loan

In some cases, debt consolidation loans will not reduce your repayments entirely, as it depends on how much you are currently repaying and over what period. They cannot erase your debts entirely and should not be taken out as a form of debt relief or settlement.

Debt consolidation loans can also mean you end up paying more overall than your previous individual repayments, if you choose a longer loan repayment period.

Before applying for a debt consolidation loan, it’s important to consider whether you can afford one larger monthly payment, as well as ensuring you don’t fall further into debt.

Can I get a debt consolidation loan?

If you are looking to take out a debt consolidation loan and have county court judgements (CCJs), poor credit, or are unemployed or retired, we could help you.

Discover more about eligibility in our comprehensive guide.

Applying for a debt consolidation loan

Before you start a debt consolidation loan application, it’s essential you consider your monthly income, outgoings and existing debts. Take time to consider whether you can afford to make regular repayments with this type of loan.

Calculate how much you’re already repaying for current loans and ensure it tallies with the new repayment structure of your debt consolidation loan. This will help you decide whether combining your credit into a single repayment will help your financial situation.

What do I need to apply for a debt consolidation loan?

When you start an application online, our team will be in touch over the phone to talk through a few details. We’ll ask for further information about you like:

We’ll also discuss your current situation and the existing debts you have. This is in order to provide you with the best loan for you.

Before you get started, make sure you have those outstanding amounts, repayment period, monthly payments and current interest rates to hand. This will help us understand exactly what you’re paying out and whether a debt consolidation loan would lower your monthly repayment amount.

Frequently asked questions about debt consolidation loans

Can I pay off a debt consolidation loan early?

As with most loans, it’s possible to repay the amount in full at any time when you take out a loan. It’s important to remember, however, that doing so may incur an Early Repayment Fee. This amount is calculated according to how much interest won’t be paid through your early repayment. Always check the terms of your loan before you apply.

Can I take a break from paying back my debt consolidation loan?

If you think you might need a break from repayments, it’s vital to check the terms before signing up. While some lenders do offer ‘payment holidays’ on secured loans, these can have a negative effect on your credit report, so make sure to assess the situation beforehand.

Debt consolidation loans from Norton Finance

Norton Finance has the expertise to help you find the right loan, even if you’re unemployed, retired or have CCJs. We’re a broker, not a bank, so we can search the whole market for the best deal.

We have access to over 600 lending plan products, helping us to find a solution that’ll suit your personal situation. The loans we find could allow you to borrow from £3,000 to £500,000 to consolidate existing loans, over a period of one to 30 years.

Once you’ve submitted your application, we’ll make an ‘in principle’ decision within 24 hours on whether you’re successful.

Debt consolidation loan details

We can give you the tools you need to better manage your financial situation and provide a simple and flexible loan process. Our team will assist you in every way possible to ensure you get the repayment terms and interest rates that are best for you.

What can I use a debt consolidation loan for?

You can use a debt consolidation loan to help pay off all sorts of existing debts, although it’s important to note that mortgages are not included.

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Credit cards

Help manage multiple repayments on your credit cards by consolidating into one, simple monthly sum.
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Store cards

Standardise the interest rates you pay back at for different store cards and potentially lower your regular payments.
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A personal loan can be used for just about anything, from retraining to travel.

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