Who qualifies for a debt consolidation loan?
You will qualify for a debt consolidation loan if you are approved for a new loan of an amount that enables you to pay back at least two existing debts. To do this you will need to make a new credit application and be accepted based on your credit score and circumstances.
Can I pay off a debt consolidation loan early?
As with most loans, it is sometimes possible to repay the amount in full ahead of time. However, it’s important to remember that this may incur an Early Repayment Fee. This amount usually varies from lender to lender. 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 at any point, you should check the terms before applying. While some lenders do offer ‘payment holidays’ on loans for debt consolidation, these can show up as a negative on your credit report.
Also, be aware that if credit is repaid by a consolidation loan over a longer term, the amount repayable may be higher.
Do debt consolidation loans hurt your credit score?
Applying for any form of credit could mean a temporary decrease in your credit score, especially where multiple searches have been placed on your credit file.
However, taking out a debt consolidation loan in particular doesn’t negatively impact your overall credit score. In fact, over time it could act as a boost as you make repayments and prove your reliability as a borrower.
Just make sure to keep on top of making payments regularly. If you're concerned about any negative implications, it's important to seek advice from one of our experts beforehand.
What are unsecured debt consolidation loans?
Unlike a secured loan, an unsecured debt consolidation loan (also known as a personal loan) isn’t linked to any property you hold. That means, if you fall behind in payments, a lender won’t be able to take ownership of your property.
Debt consolidation without the risk of losing your property may instead be subject to higher rates.
Questions about our loans
We can give you the tools you need to better manage your financial situation, by offering a simple and flexible loan process. Our team can assist you in every way possible to ensure you get the repayment terms and interest rates that are best for you.
Once we’ve received your application, we’ll make an ‘in principle’ decision within 24 hours. We can also make direct payments around 14 days after your application has been approved.
- How much can I borrow?
You can borrow anything from £3,000 to £500,000 when you choose Norton Finance and our trusted network of lenders.
- How long are the repayment terms?
Repayment terms vary between one and 30 years. They usually depend on your personal circumstances, including how much you borrow and the amount you can comfortably afford to pay back each month.
- What are the interest rates?
The interest rate you’re offered will depend on your individual money management history and current credit score. If you’re a homeowner, our secured loan rates start at 6.7%.
- Are there any loan fees?
We may charge a broker fee of up to 12.5% on all secured debt consolidation loans, capped at £3,995. We don’t charge fees on unsecured consolidation loans, as we receive a commission from the lender.