Debt Consolidation Loans
You could receive your loan in as little as 3 days!
- Borrow from £10,000 to £250,000
- Flexible terms from 3-30 years
- Bad credit histories considered
- Self-employed, pension and benefit income
- Direct lender so no broker fees
Representative Example: A secured loan of £31,000 payable over 7 years on a fixed rate of 9.83% for the first 5 years, followed by a variable rate, currently 9.69%, would require 60 monthly payments of £553.17 followed by 24 monthly payments of £552.39. The total amount repayable would be £46,447.56, this includes interest, an arrangement fee of £1,999 and a processing fee of £499. The overall cost for comparison is 13.1% APRC representative.
What is a debt consolidation loan?
A debt consolidation loan is used to pay off one or multiple high interest debts and combine them into one loan.
Borrowers usually do this to make their debts easier to manage as it simplifies your repayments. Not only does it make it easier to manage, but it can also reduce the amount of interest you pay by having all of your debt in one place.
Borrowers can use their home as a security for a debt consolidation loan. Many borrowers take out a secured loan to consolidate their debt, as they tend to have a lower rate in comparison to an unsecured loan. This is because a secured loan uses your property as security and there is less risk.
This product is available as either a first or second charge mortgage, subject to eligibility and our lending criteria.
What type of debt can I pay off with a debt consolidation loan?
Credit cards
These can be an expensive way to borrow in the long term due to the high APRs (Annual Percentage Rates) that credit cards can often have.
Personal loans
These can be unsecured loans that you may have taken out in the past to buy a car, go on holiday or make home improvements.
Overdraft
Some borrowers pay off their overdraft due to high interest rates their bank is charging.
How does debt consolidation work?
1. Look at your current data
Decide which debts you wish to condolidate and then calculate the total value of the loan you'll need in order to consolidate them.
2. Discuss your requirements
Your loan lender will then work out a monthly payment and loan term that meets your needs and circumstances.
The adviser will also look at whether it is appropriate to secure a previously unsecured loan and look at the costs associated with increasing the period over which the debt is to be repaid.
3. Consolidate your debt
When you have been approved for a loan, the lender will likely pay the creditors directly, so you won't have to do it yourself.
You will have a monthly payment until you have made all your payments over the loan term, unless you decide to settle your loan early and pay it off.
Can I get a debt consolidation loan with bad credit?
At Central Trust, we consider all credit histories, including defaults, CCJ's, missed payments and those on debt management plans to offer debt consolidation loans with poor credit. These are however subject to our criteria and underwriting standards.
We consider all applications on an individual basis, so whatever your credit circumstances we will try our very best to help you.
Is debt consolidation a good idea?
There are different factors to consider before taking out a debt consolidation loan. Ultimately, it depends on your financial situation and whether or not it is the right option for you.
Pros
Cons
How much do debt consolidation loans cost?
Similar to other loans, the main costs of a debt consolidation loan are the fees and interest rate. However, the cost of a debt consolidation loan can also depend on various factors, including:
Loan amount
Loan amount will depend on the total amount of debt you want to consolidate.
Loan terms
Your monthly repayment will depend on how long you intend to borrow the money for.
Fees
Fees can include arrangement fees (also known as lender fees) and broker fees.
Early repayment charges
If you wish to repay the money you’ve borrowed back earlier than planned, an early repayment charge may stand. The amount depends on the lender, so it’s important to bear this in mind then agreeing to your loan.
Why choose Central Trust?
Fast and Simple Process
You could access funds within days by calling our team directly or enquiring online.
Over 35 Years’ Experience
We are one of the UK's longest established specialist lenders, so you can relax knowing you're dealing with an experienced team.
Regulated by the FCA
We work to uphold the FCA's standards through transparent and responsible practices. We provide legal and financial protections to ensure a safer and fairer borrowing experience.
Your Loan,
Tailored for You.
Consolidating debt? Paying for a large expense like home improvement or a wedding? We have you covered.
Unlike many other lenders, there is no strict automation to our lending decisions. Your application is assessed by our team, not by a computer.
How it works
Organising your finances can sometimes feel stressful, but we want to make it as easy as possible for you.
In just 3 simple steps you could have the money in your bank account. All you need to do is:
Enquire
Complete our quick and easy online enquiry form. Alternatively, you can speak to an advisor instantly by calling us or starting a live chat.
Share
One of our qualified advisors will call you to discuss your enquiry and work out a monthly payment that meets your needs and circumstances.
Complete
We'll help you complete the paperwork and any other supporting documentation required. Everything can be completed electronically, or on paper if you prefer.
Ready to enquire?
Call an advisor free on:
0800 980 6273
- Friendly UK based advisors
- Enquiring won't affect your credit rating
- Fast turnaround time 7-10 days is possible
- Immediate contact from our advisors
- We are a direct lender
Does getting a debt consolidation loan hurt your credit?
Your credit score won't decrease after a soft search, however it could after a hard credit search is completed. However, a hard credit search only happens if you choose to proceed with the loan. It's important to bear in mind that if your credit score does decrease it will only be temporary. If you consistently make your payments on time it's likely your credit score will get better.
What are the pros and cons of debt consolidation loans?
Rather than having multiple debts to repay, a debt consolidation loan puts all of your existing debts into one payment, which makes budgeting easier to manage. Having one repayment per month means that you are more likely to meet monthly payments on time therefore protecting your credit score.
On the other hand, if you miss frequent mortgage payments then you are at risk of being set back further and your credit score being affected.
Another drawback of a debt consolidation loan is that they can include additional fees and payments, so it is important to consider the potential additional expenditure that you may encounter when enquiring for a debt consolidation loan.
What documents do I need for a debt consolidation loan?
The type of documentation you’ll need differs depending on your situation. However most lenders will initially ask you about the following:
- Proof of income
- Property information
- Credit history
Can I put all my debt into one loan?
Possibly. A debt consolidation loan can be used to combine all your existing debts into one, this includes credit cards or unsecured loans. However, this is dependent on how much you’re looking to raise and how much equity you have.
What credit score do I need for a debt consolidation loan?
This depends on the lender you apply with and what type of credit score they would be willing to accept. Unlike other lenders, we consider all credit histories. We understand that life happens and there’s more to your story than your credit score or your recent pay slip.
