We search our panel of lenders that specialise in consolidation loans
It is important to remember that late payments may affect your credit rating
Please consider the APR of a consolidation loan – only use if it is economical
Check the terms of the lender we find – there is no obligation to accept the offer
Consolidation loans are helpful if you have several, smaller debts, such as credit cards, store cards. Even a small personal loan could benefit from a consolidation loan. Consolidation loans are designed to cover the total amount of that existing credit, with one lender. This saves keeping on top of several repayments each month and running the risk of paying more overall interest. This means you only have to worry about one single repayment, to help you keep on top of your expenditure.
We always ask customers to consider all options before taking out a loan. This applies if considering a loan in order to consolidate existing debts. If you feel this is the best option, and that having one monthly repayment will relieve the stress of debt, then Moolr could help you today.
We advise trying the debt consolidation calculator on the Step Change charity website for guidance. stepchange.org/Debtconsolidationcalculator
If consolidating your loan means a larger monthly repayment total and/or a higher interest rate than you are currently paying, then it does not make sense to continue. The interest rate depends on how much you are borrowing and your credit rating. Consider your options before proceeding.
One option could be debt management – as discussed in our debt management blog.
If you are looking at a loan to consolidate debts you already have, there is a chance you are struggling to manage your debts. Therefore, it may well be a good idea to get free, impartial advice.
If you need extra advice about your financial situation, we highly recommend the following option. moneyadviceservice.org.uk, a government site that will provide free, impartial advice. Money Advice Hotline: Available Monday – Friday from 8:00am to 8:00pm and Saturday from 9:00am to 1:00pm. Telephone: 0300 500 5000.