A debt consolidation loan can help you manage your debt more effectively, by paying off some or all of your existing debt. If you have existing debt such as other loans, credit cards, store cards or an overdraft, a debt consolidation loan can be used to pay this off and convert what you owe into a single monthly repayment.

So if you have a few outstanding debts, we can help find the best debt consolidation loan for you from our trusted panel of lenders. Getting a quote won’t affect your credit score.

What is a debt consolidation loan?

Debt consolidation is a way of reorganising your debts. It involves taking out one loan to pay off several other debts such as overdrafts, payday loans, and credit cards. 

So a debt consolidation loan is designed to help you get on top of any outstanding credit you have by moving some or all your debt into one place. That could mean one loan amount, one monthly payment, one interest rate, and one lender. 

Get loans at 3,5% available up to 1,600,000€. Apply now and get money in cash or available into your bank account in 1 weeks.

You can apply now by our online application form. 

How do debt consolidation loans work?

1. You can take out a loan that will cover some or all of your debt
2. That loan is used to pay off your existing creditors in full
3. You would then make a regular monthly repayment for the duration of your loan term

For example, if you have £1,000 outstanding on a credit card, a £2,000 overdraft and £500 owing on a store card, you could take out a debt consolidation loan for £3,500. You use the loan money to pay off the credit card, overdraft and store card, and then make just one payment each month to pay off the £3,500 debt consolidation loan.

To qualify for a debt consolidation loan you must:

• Be 18 years of age or older
• Have a steady stream of income
• You must have been employed for the full 6 months preceding the application (or 12 months if self-employed)
• Be able to prove affordability
• For some loans, you’ll need to provide sufficient security

Supporting documents required

• An acceptable form of ID
• Proof of income in the form of recent payslips
• 2-months worth of bank statements
• Proof of address (a utility bill)
• Various documents related to your specific form of security

What can you use a debt consolidation loan for?

A debt consolidation loan is used to combine multiple debts into a single, more manageable loan. This can help to simplify your finances and potentially reduce your monthly outgoings.

You can use a debt consolidation loans to consolidate lots of different types of debt. These might include:

• credit cards
• store cards
• personal loans
• payday loans
• overdrafts
• car loans
• buy now pay later schemes
• outstanding utility bills
• payments to debt collectors or bailiffs

However, it’s important to note that paying off some types of debt may trigger early repayment charges.

Types of debt consolidation loans

Secured loans

A secured loan (or homeowner loan) is tied to your property, and for this reason it’s only available to homeowners. Sticking to your repayments is essential, and your home could be at risk if you fail to do so.

Personal loans

A personal loan could be a suitable option if you’re not a homeowner and need to borrow a smaller amount or don’t wish to use your home as security.

How much will a debt consolidation loan cost?

The cost of taking out a debt consolidation loan will vary based on several factors, including the amount borrowed, the term of loan, and the provider. There is often a fee for these types of loan, so make sure you factor this into the overall cost when assessing your options. A as t invest-loans we provide you the best repayment terms.

How long will it take for me to get my money through a debt consolidation loan?

This depends on the type of loan you apply for.

With a secured loan, it can take three weeks for you to receive your money. This is because the loan is secured against your home and requires additional time to process. The sooner you read and sign your agreement and share any required documentation with us, the quicker you’ll receive your loan.

With a personal loan, the money can be with you in a matter of days. In some cases, you may even receive the money the same day. 

Will I need a guarantor for a debt consolidation loan?

No, you can get a debt consolidation loan without a guarantor.

However, a guarantor may improve your chances of being accepted if you can’t get approved on your own. A guarantor provides the lender with more reassurance that the loan will get repaid. In the event you are unable to keep up with your loan repayments, the guarantor would have to make them on your behalf.

Is a debt consolidation loan a good idea?

Whether a debt consolidation loan is a good idea for you or not depends on how much debt you have and what your income is. Some of the benefits of taking out a debt consolidation loan include:

Simpler payments – By putting all of your debts in one place, you can choose to make one monthly payment. This can make budgeting simpler and payments easier to keep track of.

Lower monthly payments – If you have high interest rates on your existing loans or they are over a short period of time, you could lower your monthly payments with a debt consolation loan.

Debt is easier to keep track of – When you don’t have to juggle lots of different debt repayments, it can be easier to see exactly how much you owe and how quickly you’re paying it off. However, the repayment term for some of the existing debts could be extended and you might pay more interest over time.

A potential payment break – If you apply for a Invest-loans Debt Consolidation Loan you can also apply for a payment break which, if approved, may mean you don’t have to start paying your loan back for up to two months. Interest will still accrue during that time.

Successfully paying off a loan can also help boost your credit score. That said, if you don’t meet your payments every month, you may end up damaging your score.Debt consolidation with bad credit 

Can you get a debt consolidation loan with bad credit?

It may be more difficult to get a loan if you have bad credit, but there are companies such as invest-loans who specialise in finding providers that offer loans to those with bad credit.

Does debt consolidation impact my credit score?

A debt consolidation has the potential to either help or hurt your credit score.

To improve your credit score, you’ll need to make your loan repayments on time.

You should also close your accounts with your previous lenders so this credit is no longer available to you. Having too much available credit could affect future credit applications, as lenders will question why you want to borrow more money.

A debt consolidation loan can damage your credit score if you fail to make repayments on time. Taking out more credit – i.e. the debt consolidation loan itself – can also impact your credit score.

You’ll also need to be disciplined about not slipping back into using the overdraft or credit cards you have just paid off. That’s why you should close your old credit accounts as soon as your debts are paid off.

Will I go through a credit check when applying for debt consolidation?

A hard credit check is only done when you submit your final application, not when checking your eligibility online.

You can check your eligibility for a loan with a soft credit check, which doesn’t impact your credit score and is only visible to you. This allows you to see offers you’re likely to be accepted for before even applying. Get the right consolidation loan 

How to get the right consolidation loan

Check your credit report

You should check your credit report before making an application for a debt consolidation loan

If you see any incorrect information, you can raise a dispute by selecting the ‘Raise a dispute’ option against the appropriate section of your credit report.

Calculate how much you need to borrow

You need to work out how much you owe in total. Ask your creditors for a settlement amount, including any early repayment fees or other charges, for each of your debts.

Then add up the amounts: this is how much you need to borrow as a debt consolidation loan.

Work out how much you can afford to repay each month

It’s important that your monthly payments on a debt consolidation loan are affordable and fit your budget. Otherwise you may fall into arrears on your debt consolidation loan, or be tempted to borrow money elsewhere.

How much you can afford to pay each month will influence the term over which you take the loan.

Look for a low interest rate

When you take out a debt consolidation loan you’ll pay it back monthly, plus interest. It’s important to find the lowest interest rate you can.