If you have overdrafts and loans, then you are likely making a number of repayments at different times during the month on variable rates of interest. Personal loans are unsecured loans and have a very high rate of interest. Debt consolidation loans UK can help you combine all your loans into single consolidated repayment at a fixed rate of interest which is lower than all the interests that you are paying on current loans.
Benefits of debt consolidation loans
- Simplify your repayment schedule with a single repayment amount
- You can choose when you want to make your monthly repayment
- Save money because the interest on debt consolidation loans is usually lower than interests paid on individual loans
Eligibility criteria for debt consolidation loans
Most of the lenders ask for specific criteria before qualifying a debt consolidation loan.
Anyone with a citizenship or legal resident status in the UK, minimum age of 18 years, possesses a bank account or building society account with a direct debit facility, has a regular income falls within the circle of debt consolidation loan.
Loans for people with bad credit ratings
Some people may end up having bad credit mark due to overtly spending habits. However, they have learnt from their past mistakes and are now ready to make a fresh start in life. Such people approach debt consolidation loans for bad credit claims in the UK. In this way you not only consolidate your loans into a single one, but you are also improving your credit score. If you take a debt consolidation loan when you have bad credit and make repayments regularly over the tenure of the loan, then your credit rating will improve dramatically.
How to apply for unemployed loans
One of the possible reasons, why you entered into the debts is unemployment. The unemployed loans offer remarkable way to consolidate the debts on other loans. Approach a loan broker and he is going to brief you about it in a more sane manner. No high street traditional lender will be ready to provide you a loan if you are unemployed. However, loan brokers have association with many specialist lenders who will be ready to consider your ability to repay the loan in the near future and they will readily provide you with a loan.
Benefits of applying through brokers
The entire process of loan application and approval becomes convenient and hassle free when you apply through a loan broker. You simply have to fill out an application form on the website of the loan broker, and he will compare your requirements against the listed products provided by a large number of lenders. You will find tailor made loans to suit your requirements.