Debt Consolidation Loans

Compare Debt Consolidation Loans with Real Interest Rates.

Stop struggling with your finances and repayments. Get a consolidation loan and allow yourself financial breathing space. Merge all your debts and make a single repayment against them each month.

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  • Loan

    Loans from £1,000 – £35,000

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    Borrow for 1 to 7 years

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    Single Monthly Repayment

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    Merge your Debts into One

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    Real Interest Rate

What is a Debt Consolidation Loan?

Most of us do not check our regular outgoings and soon, we face the burden of a pile of unmanageable debts. A debt consolidation loan is a personal loan that you can use to combine your current debts into one. That means instead of paying multiple loans – you can repay a single loan.

Generally, people who opt for a debt consolidation loan consider reducing:

• The number of monthly repayments they have to make each month.
• The overall rate of interest they may be paying on each of their existing debt.

Consolidating the debts doesn’t mean you do not have to repay your existing debts. It means you are taking a new loan to pay off all the other ones – which may also reduce your monthly outgoings. It makes debt management easier and convenient.

In addition to this, when you start making timely repayments towards your loan – your credit score also starts improving.

Reasons to Borrow a Debt Consolidation Loan

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Pay less in interest by merging all your existing debts into one.

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Easier to track the payment and this leads to maintaining the budget.

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Make single repayment each month instead of making multiple repayments.

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Improve your credit score by making repayments in full and on time.

Things to Consider Before Borrowing a Debt Consolidation Loan

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  • If you’ve multiple monthly repayments, it may help you save money in the long run by lowering the interest rate you are paying. A new personal loan will help you repay all or most, outstanding debts through a single monthly repayment.
  • Generally, interest rates for this sort of loan are lower, the more you borrow. This could mean that you end up paying less interest than on all of your other debts combined.
  • There are two types of debt consolidation loans – Secured & Unsecured. If you opt for a secured debt consolidation loan the amount you borrow is secured against an asset, usually your home. This may be offered by lenders if you have a poor credit history.
  • You can lower your monthly repayments by spreading the debt over a longer period. This works well when consolidating short-term debts such as payday loans.

Alternatives to Debt Consolidation Loans

A lot of people choose to consolidate their existing debts into one so that it will be easier for them to track the payments. If you do not get access to a debt consolidation loan, you may try the other alternatives that may work for your situation.
  • Loan

    You can choose a balance transfer option if you have a credit card that allows you to do so. This option is better only if you know that you can pay off the debt quickly. Before opting for this, find out whether you have to pay any fees. Moreover, another major point to consider before opting for a balance transfer is the interest rate. Check all these things prior to making a balance transfer.

  • Loan

    So rather than paying the entire amount that you owe to the lender, you have to pay a lump sum amount to settle your debt. Although it sounds great, it will impact your credit score and may even cost you more than what you owe. It is important that you do your research before going for a settlement.

  • Loan

    If you are a homeowner, you can also consider borrowing some money against the equity of your property to repay your existing debts. However, this will put your property at risk. Therefore, choose this option only when you are sure of making timely repayments.

Why Should You Apply With Us?

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Real Interest Rates

Unlike other loan comparison websites, we offer you a platform to compare the rates of personal loans on real time. That means you can now compare the loans on real interest rates rather than on proposed rates

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Instant Decision

You do not have to wait for hours or days at end to know the decision of our lenders. It will hardly take a minute or two and you will receive detailed information like the lenders who have accepted your application and who have declined it.

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Customer Ratings

We love our customers and so do they. A lot of our customers have appreciated our service that is simple, fast, and transparent. We believe in making the entire process less time consuming, straightforward and easy for a seamless borrowing experience.

FAQs on Debt Consolidation Loans

We have answered almost every question related to debt consolidation loan that are frequently asked. If you do not find something, please contact us.
Faq

Different lenders will have different criteria in relation to which loans can and can’t be consolidated. Generally, things like credit cards, store cards and personal loans can be consolidated into one loan.

If you manage to pay off all other debts with the debt consolidation loan, then yes, you will have one manageable monthly repayment. If, however, you still have debt from other sources after the consolidation loan, you will still have existing monthly repayments as well as the consolidation debt.

Many of the lenders we work with do have an early repayment charge on debt consolidation loans. An example of this may be a 28 days’ notice period, with an additional 30 days interest on the debt that is owed. Each lender is different, however, and it is worth reading through the terms and conditions of the specific loan before agreeing to it.

In short, yes, debt consolidation can save money for those with multiple debts in various places. This is not guaranteed, but it does happen very often. This is due to consolidating all of your monthly repayments into one manageable repayment every month, meaning you may end up paying back less each month. These types of loans often have lower interest rates than those of credit cards or payday loans. This means you may also end up paying less interest each month.

No, this sort of loan isn’t guaranteed to get you out of debt and you shouldn’t believe anyone that says otherwise. Debt consolidation loans do make getting out of debt a lot easier, but it is down to you to get yourself out of debt by keeping up with the repayments. If you can keep on top of the monthly repayments, then a debt consolidation loan can help you on the way to becoming debt-free.

Our lenders lend only to customers who are aged 18 or above.

LoanTube works with lenders and helps match them up with their perfect borrower. Some of these lenders might not consider you, while others might think you are the ideal customer. It is our job to pair you with the right lenders based on the information you give us.

No. You’re never under any obligation to accept an offer that you receive from LoanTube. Even if we say “yes” then you turn around and tell us “no”, there’s no charge for our service.

LoanTube doesn’t lend you the money- we’re a credit broker and not a lender. As a credit broker, we act as a bridge between lenders and borrowers. We connect you with the lenders (all licensed by the Financial Conduct Authority) who will consider your loan application. Applying through LoanTube means you don’t have to submit dozens of applications individually to each lender to get your loan decision.

Representative APR Example

The rate you are offered will depend on your individual circumstances.

Representative APR Example: On an assumed loan amount of £2,600.00 over 36 months. Rate of interest 41% per annum (fixed). Representative 49.7% APR. Total amount payable £4,557.89 of which £1,957.89 is interest. 35 monthly repayments of £126.61 and a final payment of £126.54