Debt Consolidation FAQs
FAQ Debt Consolidation
- What is Debt Consolidation?
- Is Debt Consolidation the right choice for me?
- What is the difference between Debt Management and Debt Consolidation?
- How do I apply for a debt consolidation loan?
- Will I get a debt consolidation loan if I have been black listed?
- How much will I reduce my payments by?
- Can I get a Debt Consolidation Loan if I have a bad credit history?
- What types of debt can I use my Debt Consolidation loan for?
- What is the term of my repayments?
- How much can I borrow?
- Will a Debt Consolidation Loan damage my credit rating?
- Am I restricted to using my loan for just Debt Consolidation?
- Can I keep my credit cards if I get a Debt Consolidation Loan?
- Who can help me consolidate my debt?
- Am I guaranteed to get accepted for a Debt Consolidation Loan?
FAQ Secured Loans
- What is a secured/homeowner loan?
- Can a loan cut my existing bills?
- If have a bad credit rating, can I get a secured loan?
- What are the advantages of a homeowner loan?
- What are the disadvantages of a homeowner loan?
- How can I compare loans?
- How much will I have to pay each month?
- What can I use the loan for?
- What is the difference between a secured loan and an unsecured loan?
- How long is the repayment period?
- How much can I borrow?
- Should I get a secured loan?
- What questions will you ask?
- Will I get a competitive interest rate?
- Can I get a loan if I have been turned down in the past?
FAQ Re-Mortgages
- Can a remortgage save me money?
- I have a poor credit rating, can I remortgage my home?
- How much money can I borrow?
- What is a remortgage?
- Shouldn’t I stay with my mortgage lender?
- Can I use a remortgage to pay off other debts?
- What are the advantages of a remortgage?
- What are the disadvantages of a remortgage?
- Will my existing lender charge me any fees?
- Why should I remortgage?
- I don’t understand some of these technical terms, help!
- How long will I have to wait for my remortgage?
- How much will it cost me to remortgage?
Answers
I can’t find the question that I want to ask.
Don’t worry, just call our freephone number on 0800 048 3674 and the Debt Consolidation team will be happy to answer any questions you have.
FAQ Debt Consolidation
What is Debt Consolidation?
Debt Consolidation is a loan which you use to pay off your high-interest unsecured debts, such as credit cards, store cards and catalogue debts. It is usually secured which means that you will be paying a much lower rate of interest.
Is Debt Consolidation the right choice for me?
If the main reason for getting a loan is to manage your unsecured debt then there might be other alternatives out there. For example an IVA might be suitable if you have debts over £15,000 and are struggling to make payments. Please call our freephone number to talk through your options, 0800 048 3674.
What is the difference between Debt Management and Debt Consolidation?
Debt Consolidation means that you will have to get a loan which will consolidate your existing unsecured debts. Whereas Debt Management is a debt repayment plan which does not involve any further borrowing. Instead you make one lower repayment which will distribute between your creditors. It is important that you get expert advice before making your decision, as what is right for someone else may not be right for you.
How do I apply for a Debt Consolidation loan?
Applying for a Debt Consolidation loan is easy, all you need to do is get in contact with our expert loan advisors who will find you a debt consolidation plan for you. Call our team of loan advisors free on 0800 048 3674.
Will I get a debt consolidation loan if I have been black listed?
Being blacklisted means that you are seen as a risk to lenders, and they are often not willing to lend you any more money. You could be classed as black listed if you have missed multiple payments, defaulted on your agreement or have CCJs.
If you have been turned down for that reason then Debt Consolidation can help, we can help you find the right loan for your circumstances. Call today on 0800 048 3674 or fill out the Quick Enquiry Form on the right hand side of this page.
How much will I reduce my payments by?
That is not an easy question to answer, as it is all dependent on the amount of debt that you owe and the interest rate of your new loan. It is best to speak to one of our expert Debt Consolidation advisors who will talk you through your options and what advantages it has for you. Call us free on 0800 048 3674.
Can I get a Debt Consolidation Loan if I have a bad credit history?
No matter what your financial circumstances, we might still be able to get you accepted for a Debt Consolidation Loan. We specialise in helping those with a poor credit history get accepted for a loan.
What types of debt can I use my Debt Consolidation loan for?
You can use your debt consolidation loan for unsecured debt, such as personal loans, credit cards, store cards and catalogue debts. If you have debt that you want to consolidate but you are unsure if you can do so, please speak to our advisors on 0800 048 3674.
What is the term of my repayments?
That is dependent on you. We have an excellent panel of lenders which means that that we should be able to offer you a loan that will suit your circumstances. Our Debt Consolidation Loans are available over 3 to 25 years.
How much can I borrow?
The amount that you can borrow for debt consolidation is dependent on your circumstances, such as your income. You need to speak to our advisors who will go through your finances and will do their best to offer you an affordable loan at a great rate.
Will a Debt Consolidation Loan damage my credit rating?
No, taking out a debt consolidation loan will not damage your credit rating in any way. As you will be paying off your unsecured debt it will have no negative impact. However if you have missed payments, have defaults or CCJs then your credit rating will already be low.
Am I restricted to using my loan for just Debt Consolidation?
Not at all, we will not restrict you what you can use your Debt Consolidation Loan for. You might want that extra money for home improvements, a new car or that dream holiday!
Can I keep my credit cards if I get a Debt Consolidation Loan?
Yes, you can still keep your credit cards as getting a debt consolidation loan will affect your credit rating. However, if you are looking at a loan to consolidate your debts to make your monthly payments easier, we would advise that you don’t use your credit cards and end up in even more debt.
Who can help me consolidate my debt?
If you are looking for debt consolidation services, it is vital that you speak to experts in their field. Here at Debt Consolidation we pride ourselves in having great relationships with lenders so we can find a loan that is right for you, no matter what your circumstances.
Am I guaranteed to get accepted for a Debt Consolidation Loan?
Getting a debt consolidation loan is subject to your credit history and a number of other factors which means that not everyone can qualify. Our loan advisors will do their best to find a Debt Consolidation Loan to suit your circumstances, but if that is not possible we can advise you on other debt solutions. Call us free on 0800 048 3674.
FAQ Secured Loans
What is a secured/homeowner loan?
Both a secured loan and a homeowner loan are loans which are secured against your property. This means that if you can no longer keep up repayments then you risk losing your home.
Can a loan cut my existing bills?
If you use your loan to pay off your high interest credit and store cards, then it will cut your monthly repayments.
If have a bad credit rating, can I get a secured loan?
We will do our best to help. no matter what your credit history. You are best calling our freephone number and speaking directly with one of our expert advisors.
What are the advantages of a homeowner loan?
With a homeowner loan you will be able to cut your existing monthly payments on your debt and get a cheaper interest rate than an unsecured loan.
What are the disadvantages of a homeowner loan?
The biggest disadvantage is that if you fail to keep up on the monthly repayments then you risk losing your home.
How can I compare loans?
There are a number of different ways that you can compare a loan, but the easiest way is to look for the lowest APR (Annual Percentage Rate).
How much will I have to pay each month?
The amount that you will have to pay each month is dependent on the amount that you borrow. For more information please call our freephone number.
What can I use the loan for?
Unlike some lenders, we would never restrict you in what you decide to do with your loan. But one of the most common reasons to get a secured loan is to consolidate your unsecured debts.
What is the difference between a secured loan and an unsecured loan?
A secured loan is a loan secured against an asset of value, such as your home. If you fail to keep to these repayments then your home may be at risk.
Whereas an unsecured loan is not secured against any of your belongings, but as a result it will usually carry a higher interest rate.
How long is the repayment period?
There are a number of varying factors which will affect the repayment period. And some Secured Loans give you the option to pay the loan back earlier than planned.
How much can I borrow?
This is dependent on your financial circumstances, but you may be able to borrow a figure into the hundreds of thousands.
Should I get a secured loan?
At the end of the day it has to be your decision if you think you should get a secured loan, just make sure that you do not over burden yourself by getting into more debt. You also need to make sure that you can afford to make the monthly payments as they fall due, as your home will be at risk if you fail to do so.
What questions will you ask?
Debt Consolidation will ask you a number of questions about your finances, so we can understand more about your situation and, more importantly, make sure that we find a loan which will not hinder your financial circumstances.
Will I get a competitive interest rate?
Debt Consolidation have a leading panel of lenders and we will always aim to find you the best loan deal to suit your circumstances. But if you have a poor credit rating then you need to be prepared to pay a high interest rate.
Can I get a loan if I have been turned down in the past?
Yes, even if you have been turned down for a loan in the past, Debt Consolidation could still get you accepted. The best thing to do is to speak to our advisors on freephone 0800 048 3674.
FAQ Re-Mortgages
Can a remortgage save me money?
Yes, a remortgage could save you money. And many of our clients decide to remortgage so they can save money through a lower interest rate, as they are currently on their lender’s standard variable rate.
I have a poor credit rating, can I remortgage my home?
Yes, we can still help you remortgage your home. Each remortgage is different, so the best thing you can do is contact us so we can start the process today.
How much money can I borrow?
This is different for each person as it is dependent on your income and the value of your home.
What is a remortgage?
A remortgage is when you, the borrower, change their existing mortgage lender to another provider. This new mortgage will not require you to move from your existing home and it could reduce your interest rates.
Shouldn’t I stay with my mortgage lender?
Many borrowers feel loyal to their lenders, but this loyalty is not often rewarded. It could really benefit you in the long run to remortgage so that you can take advantage of a much lower interest rate.
Can I use a remortgage to pay off other debts?
Yes, one of the great advantages of remortgaging your home is that you will be able to consolidate any of your unsecured debts.
What are the advantages of a remortgage?
Your remortgage will give you the opportunity to raise finance by releasing equity in your property which can be used for any purpose. It can lower your interest rate and reduce your monthly rates meaning that you save money.
What are the disadvantages of a remortgage?
There may be costs that occur if you remortgage your home. This includes the cost of transferring lenders and legal fees.
Will my existing lender charge me any fees?
Your current lender may charge you for ending your mortgage contract early. But even with this added cost, you could still be saving money in the long term.
Why should I remortgage?
Our clients remortgage for many different reasons. A remortgage can offer you low interest rates, as well as a chance to raise finance or consolidate your existing unsecured debts.
I don’t understand some of these technical terms, help!
We have listed some of the more technical language in our glossary page. But if you need any help or advice you can contact our professional staff via a freephone number.
How long will I have to wait for my remortgage?
As each remortgage case is unique, the processing times may vary. But we will try and get your remortgage application processed as quickly as possible.
How much will it cost me to remortgage?
Each remortgage application is unique, so your costs will vary. Costs to consider include valuation and arrangement fees.