Debt Consolidation Loans

How does a debt consolidation loan work?

If you’re struggling to keep up with payments on a number of debts, a debt consolidation loan lets you borrow money to merge them into a single monthly repayment. It helps reduce the number of monthly outgoings and means you can get a better handle on your finances.

We know what a struggle it can be when you find yourself in debt. There’s so much to keep on top of, and so many different deadlines and interest rates to think about. This can make it feel very stressful to take control of your money situation.

By applying for a debt consolidation loan, you can turn all those worries into one single monthly repayment. This means you can get a firm grip on your outgoings and manage your finances much more easily.

Managing your debt

Pay day can come and go without helping you feel like you’ve got a handle on your finances. Your payment schedule can become confused when there’s a few different things to pay off like credit cards, loans and utility bills. With all these things on your plate, the chance of falling behind on payments from time to time increases. This has an adverse effect on your credit score, and may harm your chances of applying for future credit – whether it’s for home improvements or even to remortgage.

If this sounds like something you’ve gone through, applying for a debt consolidation loan may be the answer. You can borrow the money you need to pay off your debts and pay back what you owe us over a specified period, with competitive interest rates. By restructuring your debts like this, you can set up a repayment plan that is far more convenient and suitable than your current arrangements.

While you’re thinking about taking this step, there are some other tips you can consider in order to try to reduce your overall debt.

• Try to limit your borrowing on credit cards, and only buy what you can afford to pay off immediately
• Create a calendar to keep track of what you owe and when, as well as when you’re paid, so you know when money is going out
• Prioritise your debts – order them by the amount you owe and the interest rate. This way, more of your money goes on paying off the actual debt than it does toward the interest charges.

Unsecured debt consolidation loans

A debt consolidation loan is sometimes referred to as an unsecured loan, which consolidates existing debts into one single monthly payment. Although you must own your own home in order to qualify for a personal loan from us, the loan isn’t secured against your property.

Some types of loan, like mortgages or car loans, are secured against your house or car. But many people opt for an unsecured loan, which isn’t secured on an asset. It might mean higher interest rates, but as long as you can afford the monthly repayment and don’t default, having an unsecured loan shouldn’t negatively affect your finances and credit history.

Worry free bad credit debt consolidation

At Progressive Money, we listen to you. Applications are individually assessed by an underwriter and not by a computer. We take your whole situation and circumstances into account so we can decide on the best way forward.

If you meet the following criteria, you may be eligible for a debt consolidation loan.

• Aged 18-70
• A homeowner
• Employed or self-employed
• Living in England, Scotland or Wales
• Able to afford monthly repayments comfortably from your regular income

We cannot guarantee your personal loan until we have reviewed your current circumstances and the repayments you can afford.

Borrow money over a flexible period of 18 months to 10 years, at a monthly rate you can afford. Loans from £1,000 to £15,000 are available, so you can cover what you owe and still be able to manage a monthly repayment to us.

A personal account manager will be there for you to discuss any queries you have regarding your account right through until the completion of your loan term. Remember, your personal account manager is always just a quick call away.