Instead of multiple loans, if you have only one loan to deal with, you can feel your finances under better control. You will be in better condition to manage the repayment of one loan without disturbing your household budget. This is what you can achieve with debt consolidation loans.
Do not let multiple debts misbalance your life. Work out those debts that you want to consolidate and apply for the amount that you can repay with no hassle. Once your loan gets approval, you can pay off all the pending debts and live a debt-free life.
At ArbitrageLoans, our loans also help you at large to reduce the repayment amount that you have to manage each month. Furthermore, you can use loans to consolidate diverse types of debts, including:
Credit cards: You use credit cards more to shop around, but they have high interest rates. But if you do not pay their bills on time, you will drop your credit score more. Apply for these loans and pay their bills on time.
Personal loans: You already have a car loan, and recently, you borrowed money for home improvement. Making their instalments together will be challenging, but you can do it with ease by opting for loans for debt consolidation.
Overdraft: Your debts used to rise quickly because most of the banks penalise high interest rates on overdrafts. You need to get out of it by applying for these loans now.
In simple words, personal loans for debt consolidation are meant to pay off pending debts. If you merge all your unresolved dues with the help of these loans, you will have to deal with only one lender, making it easier for you to manage your monthly budget and reduce expenses.
You will save a lot of money on the interest rates. With lower monthly repayments, you can accumulate more funds from your monthly income and use them to handle other necessary expenses.
Options of traditional lenders are open to apply for these loans. Still, you may not find their lengthy application procedure friendly to your current financial circumstances. Therefore, you should approach direct lenders like us if you want more flexibility in the lending terms. We accept loan applications 100% online with minimum documentation and instant loan decisions.
You should know one thing before applying for these loans. They will not reduce the entire value of the pending debts. Instead, loans can help you manage those debts better because there will be one loan, one interest rate and one monthly instalment.
Pay multiple debts at one time: The primary goal of these loans is to merge all the split payments into one organised loan option. It means you are on the way to remaining debt-free. It is right that you pay off all pending dues in one go, but the repayments of that loan will continue till the term ends. Therefore, you have to manage them very well.
Examine the APR: If you want to save your money significantly with the loans for debt consolidation, then you must compare the APR of your existing debts with the APR of this loan. If you find a loan’s APR quite manageable, then only consolidate your debts.
Check the terms and conditions: You should also go through the terms and conditions of a debt consolidation loan because this is another type of debt. However, you should relax with ArbitrageLoans as we do not impose the penalty for making an early repayment fee or on any pending debt.
In case you have any doubts about understanding anything about our loans, you can contact us anytime and from anywhere.
For all those looking to consolidate their debts, there is good news: ArbitrageLoans offers secured and unsecured debt consolidation loans. Therefore, you will have the choice to choose between these two types that fit your prevailing financial circumstances.
| Secured Loans | Unsecured Loans |
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Secured debt consolidation loans are a typical funding product where you borrow money but at the risk of your asset. A lending company secures itself by demanding an asset and protecting the lending money. In case of default, you will lose that asset to the lender. Here are the benefits of these loans:
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On the other hand, these loans are comparatively short-term loans and more favourable to the borrower, considering the risk factor. You do not have to keep an asset to get the loan. Instead, you get approval on other factors such as credit score or income. However, you need to pay a higher interest rate. Some of the benefits of unsecured loans are:
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After finding a debt consolation loan that is the right choice for you, you can start applying online with one of the most trusted direct lenders in the UK, ArbitrageLoans. What you need to do is to fill out our simple online application form.
Below are the steps you have to follow when applying for any type of personal loan for debt consolidation.
Your credit score reflects your handling of previous payments. The credit reference agencies have different criteria for credit scores, but generally, borrowers find their credit ratings into one of these categories:
Our loans are designed for borrowers with poor credit histories or even worse than that. A bad credit score falls between 561 and 720, according to Experian. However, you can check your score by referring to other credit reference agencies.
Finding debt consolidation loans for bad credit in the UK might be difficult. Most traditional lenders are not willing to consider people with low credit profiles, and they consider them risky. Therefore, your priority should be to improve your credit score first.
What you can do is to avail of debt consolidation loans for bad credit from a direct lender. With ArbitrageLoans, you can comfort yourself with no worry of loan acceptance. We have dedicated deals for those with past credit issues. These bad credit loans are available online with minimum documentation and many other benefits, including:
No hard credit check: Do not worry about the credit check because we always do a soft credit check. However, as a responsible lender, providing debt consolidation loans with no credit check might not be possible, but we can consider this if you are excellent in your recent payments.
No guarantor: Yes, these are loans with no guarantor provision. This means you will apply for a loan on your own without anyone backing you. Saving time and improving your individual credit score becomes practical once obtaining debt consolidation loans for bad credit in the UK with no guarantor.
Flexible repayments:Another benefit you will attain from us is the flexibility in the loan repayment term. We give you the liberty to choose the loan term for which you can feel comfortable repaying it. Once you clear the loan with no missing or default, you will experience a significant improvement in your credit score.
Every loan has positive and negative aspects, which may or may not favour everyone. Debt consolidation loans for bad credit also have pros and risks, which our loan experts have briefed here.
Advantages
You may obtain the following benefits from these loans:
Risks
Consolidating debt is indeed a vital tool to pay off pending debts, but it may not work for everyone. Prior to deciding on the loan, it is incredibly essential to go through the possible risks of these loans.
We are always ready to fund more than your credit score. Therefore, our primary concern is to look at what you have done in recent times rather than what you have done in the past. Besides, we keep the interest rates at a percentage that you deserve and can afford.
| Variable loan amounts | Fixed interest rates and terms | No prepayment charges |
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| We want to fulfil everyone’s financial needs. Therefore, we provide flexible loan amounts ranging from £1000 to £25000. | You have a debt consolidation loan to pay a fixed interest rate to manage it well. Our term is also comfortable and stretches till 5 years. | You have the freedom to prepay your debt consolidation loan early, and we do not charge any fee for it. For further queries, you can contact us. |
There cannot be a fixed loan cost for everyone as it is based on individual circumstances. Basically, it depends upon certain factors, such as:
Interest rate: The final interest rate will determine the loan cost. If a high interest rate is there, the loan cost will also go higher.
Borrowing amount: The loan cost also depends on how much you want to borrow.
Loan term: The duration also matters. Larger terms will have higher loan costs in total.
In brief, we will thoroughly check all the details you have mentioned in the application. Based on them, we finalise the personalised rate, depending upon your loan affordability. We will mention the rates in the loan quote so that you can analyse them before approving it.
At ArbitrageLoans, you can repay the loan in full before the loan term ends. However, we do not penalise any fee for the early repayment. It would be better to inform us early so that we can arrange and share the process involved. Still, it is necessary to pay all instalments on time with no miss till that period.
To be eligible for a debt consolidation loan, you must provide some personal and financial details. It may include your credit score, monthly or annual income, credit history and relevant debts to pay off. At ArbitrageLoans, we consider your application beyond your credit score. We emphasise other factors like employment and recent financial performance.
It entirely depends upon you and the debts you have. We suggest you consolidate debts of larger amounts because they will disturb the whole financial balance of your life. You should consolidate them by applying for debt consolidation loans for the long term. For smaller debts, you can also take out these loans, but the personal loan option is also available.
