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Debt consolidation loans - A smarter way to pay off debts

Managing multiple debts with a limited income is a big challenge. Missed or delayed payments can put you at a greater risk of slipping into debt cycle. However, thankfully, solutions like debt consolidation loans can help you manage multiple debts.

Obtaining the loans online make things helps you get simpler and faster solutions. You will feel relieved if applying for the loans includes an instant approval decision and a timely money deposit in 24 to 48 hours. All this comes with a higher approval rate.

Also, apply for a loan with a poor credit rating and merge all your debts into one as per your repayment capacity. With personalised deals, you can plan your budget easily to pay the instalments on time. Bargainloans has all the vital features you need to get debt consolidation loans in the UK for bad credit scores. The loan offers come with no hidden fee or upfront fee.

Features of Debt Consolidation Loans

  • No obligation deal without guarantor or collateral
  • 100% digitised process with no paper documentation
  • Fund deposit minimum 24 and maximum 48 hours
  • Available irrespective of employment status
  • Apply 24x7 including festive holidays
  • Designed to fit individual circumstances
debt consolidation loan

 What is a debt consolidation loan?

A loan for debt consolidation is a powerful financial tool that simplifies the debt repayment process by streamlining the mess of multiple debts. The loans are where you borrow based on your individual repayment capacity. A borrower can merge all obligations and convert them into a single debt. The advantage of this is that earlier, a borrower used to pay separate instalments for different loans. Now, he will have to pay only one instalment.

Also, earlier, there were many instalments for each loan. After consolidation, the repayment plan is made at a rationally applicable lower interest rate by merging all the loans. The borrower can easily reduce the debt burden using the loan. The amount that is paid through the loan is offset by all other debt obligations. Instead, the borrower pays only one debt consolidation amount every month on the decided date.

We offer the best debt consolidation loans without taking you through a lengthy process. Apply today for a no-obligation deal.

 How do debt consolidation loans work?

In case of applying through a direct lender, a debt consolidation loan works through a speedy procedure. Everything happens online, from application to fund disbursement. Your financial and personal details are verified online.

All this processes do not take much time whether you apply for instant 12 month loans or the longer period. As soon as your repayment capacity is proved regarding the loan amount applied for, an instant approval decision is sent to you.

Along with the approval decision, the loan agreement has also been sent to you. Only after acceptance of this agreement can we process the fund transfer. The loan tenure starts after we credit the funds to the borrower's account. On the decided date, instalment is deducted. In direct lending, everything happens through online processes, so all repayments are done through auto debit.

However, certain discounts are also available to the borrowers in exchange of auto debit. To win these discounts, borrowers need to ensure ample amount in the bank account on the date of auto debit. While following borrower-friendly policies, we offer auto debit discounts to new as well as existing borrowers.

The process remains the same whether you apply with a bad credit score or for a debt consolidation loan on benefit today. However, the interest rate and repayment plan flexibility may differ as per the income type.

 Benefits of unsecured debt consolidation loans on instant decision

Several reasons can convince you to choose unsecured personal loans for debt consolidation. Let's discuss what are the factors that invite most borrowers to trust these loans.

  • Faster debt repayment - People consolidate their obligations to get rid of the burden of many debts. Therefore, the first benefit is seen in the form of faster debt repayment. You pay one debt instead of multiple debts, which helps in paying off your overall obligations quickly.
  • Lower interest rate and repayments - The loan deals are available at lower interest rates due to personalised loan offers. All the monthly repayments are affordable. You can confidently plan your budget because of low interest rates and pocket-friendly instalments.
  • Better control on finances - While handling many financial commitments, a large part of your income is spent in paying instalments of different loans. Through consolidation, you have to repay only one loan. By doing this, you achieve control over your finances. With this, planning a better future becomes simpler.
  • Fixed interest rate - Both fixed and variable rates of interest are available in the market. At Bargainloans, we offer fixed interest rates to keep the loan deal predictable and affordable. By doing this, you are saved from unpredictable price hikes, and at the same time, your repayment remains pocket-friendly.
  • Improve credit rating - Having many debts has a direct and negative impact on the credit score. Due to skipped and missed instalments, your credit rating goes down very fast. After consolidation, all the debts are merged into one loan. You can improve your credit rating by paying easy instalments on time.
  • Choose your loan terms - Loans for debt consolidation are designed according to individual circumstances. Hence, you can decide the terms and conditions of the loan according to your convenience. Choose the repayment date as per your choice and pay monthly instalments at a fixed rate as per your repayment capacity.
small-business-owners

 What must you do to get debt consolidation loans with bad credit?

A debt consolidation loan with bad credit is needed most by those struggling with past credit issues. Hence, if you are struggling in your financial life with a less-than-perfect credit rating, this financial solution is the best option for you.

Most borrowers stay away from a good financial life due to being unable to pay multiple instalments on time. In that case, it becomes necessary that they reduce their debt burden in time and plan for the future faster. Getting approval by applying for direct lending with a poor credit rating is easier. This is because in direct or online lending, your credit score is not the sole criterion.

Approval happens according to the current repayment capacity. Few details come under scrutiny without going into the details of credit history. It is vital to prove whether you have been earning regularly in the last six months to one year. Along with this, show your improved financial behaviour in the recent month. Loan approval becomes relatively easy if you have paid bills and instalments on time. While applying in a poor credit situation, keep a few things in your mind.

  • Check your credit report before applying. If there is any mistake in your credit report, then rectify it and apply. Your credit rating goes down due to errors. This can make applying for the debt consolidation loans for poor credit more complicated.
  • Apply to only one lender. When you apply to multiple lenders, they perform hard check on your finances. This creates various search footprints on your credit report, and your credit rating decreases by a few points. Therefore, apply to only one lender.
  • Apply for only that amount which you can repay. With the help of a repayment calculator, you can know what your monthly instalments will be according to your income and loan amount. Also, what will the interest rate be? With this, you can make a correct decision.
  • Keep your personal and financial details accurate. Due to poor credit situation, many times, applicants try to hide the information. But nowadays, through online verification, lenders can easily know everything. Fill every information correctly.

 Tips for Managing Debt After Consolidation

Even after consolidation, you need to take care of a few things. People often relax after debt consolidation and again get caught in the debt trap. They take new loans or max out the credit card limit. Due to this, they have to apply for a consolidation loan again. Doing this repeatedly can hurt the credit report.

  • Avoid taking a new loan - Do not take any new loan after debt consolidation unless there is an extreme urgency, such as a medical emergency. Opening any new credit account will again increase your financial burden. Also, it will be tough for you to make payments for the existing loan.
  • Track spending - Start tracking your expenses. This will help you realise where you are spending unnecessarily. Especially, track those expenses where you use your credit card for unnecessary expenses. Use your card only for rare and necessary expenses.
  • Build an emergency fund to avoid debts - Try to create a big emergency fund. By doing this, in case of any financial need, you can make money from that emergency fund and fulfil your needs. Hence, there will be no need to take out any new loans.
  • Activate direct debits - Paying your instalments through auto debit helps you pay consolidation loan instalments on time. If the repayment is skipped or delayed again, you may have to pay a late penalty. This may increase the burden of your debt manifold.
  • Review financial goals - Reviewing your financial plan score regularly will motivate you to repay your debt consolidation loans on time. You can also design a payment plan accordingly to pay off your loans sooner.

Why Bargainloans for debt consolidation loans?

We expect you to choose us to take out debt consolidation loans for some potential reasons. All our borrowers choose us for the following reasons.

  • Speedy borrowing

    • Faster application and approval process
    • Quicker fund disbursement
    • Direct upload of required documents
    • Less back-and-forth communication
  • More control

    • Manage your loan application
    • Decide when to pay instalments
    • Easier to revise or cancel applications
    • Monitor loan progress online
  • Long-term relationship

    • Bigger loan amount if you repeat us
    • Considerable flexibility on interest rate
    • Refinancing option available
    • Loan tenure extension available

Bargainloans is always ready to help its borrowers find the best deals. You can qualify for a smaller term for debt consolidation or 36 month online loans in the UK. With same flexible and democratic approach, we treat all borrowers same.

Call us now and let us understand your circumstances. In a few minutes, we will design the best deal to ensure debt consolidation guaranteed loans in the UK without burdening your credit purchase power.

 FAQ's

Will a debt consolidation loan affect my credit score?

When you apply for a loan, it causes a slight dip in your credit score. But if you keep paying the instalments of debt consolidation loans consistently, it improves your credit score. However, you should not apply for consolidation loans repeatedly. This leaves a bad impression on your debt management. After all, someone needs it only when debts go out of repayment capacity.

What happens if I miss a repayment?

You will be notified about the missed repayment. However, we also give a reminder prior to the due date of the repayment. But still if you are going through any financial issue, we give a grace period to make the repayment. If you still struggle, we are ready to offer you a new repayment schedule. Before applying to any penalty, we always work on every possible way out to help you make timely payments.

How much can I borrow through debt consolidation loans?

You can borrow up to £10K pound loans. However, the maximum amount varies as per the lender's policy. Note that the amount you qualify for depends entirely on your credit purchase power. You can even be eligible for the maximum amount if you have a strong repayment capacity with a regular income. Therefore, working on your payback capacity before applying for any loan is advisable.

What fee types are applicable to debt consolidation?

You need to pay an early repayment fee to pay off the current debts merging in exchange for taking a debt consolidation loan. Besides this, arrangement fee too is applicable. However, the amount varies as per lender's policies. At Bargainloans, we charge nominal fee but that may differ according to individual circumstances of the borrowers.

How can I know my approval chances beforehand?

Our AI-based loan calculator makes things predictable and helps you make informed decisions. Fill in some basic details like current income, total debts, required amount and submit. In a few seconds, you will see the result showing the acceptance as per your financial details. Also, it will show the approximate interest rate and monthly instalments.

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