Consolidating debt bad your credit
For example, what if interest rates go up, or you fall ill or lose your job?
If you can’t stop spending on credit cards, for example because you’re using them to pay household bills, this is a sign of problem debt.
Most lenders check your credit record when you apply for a loan, but some are still willing to consider your application even if you have had problems managing your finances in the past.
However, if the lender thinks you are a riskier borrower because you have poor credit, you may find that: You can use this comparison to search for loans that can be used for debt consolidation from regulated lenders.
Representative Example: The representative rate is 42.5% APR (fixed) so if you borrow £3,000 over 3 years at a rate of 31.9% p.a (fixed) plus an arrangement fee of £157.89 you will repay £137.31 per month & £4,943.24 in total. Guarantor must be a homeowner, or a tenant with an exceptional credit history, aged 18 to 75 years old. Borrow up to £7,500 with no fees and a friendly service. Guarantor must be a homeowner, or a tenant with a good credit history, aged over 18 years old.
Borrow £500 to £5000 with no upfront fees, no hassle, paid out in 24 hours. Representative Example: The Representative APR is 48.9% (fixed) so if you borrow £3,000 over 3 years at a rate of 10% p.a. you will repay £145.17 per month & £5,226.12 in total. Aspire Money offer a loan brokering service with no upfront fees and have loans available that don’t require a guarantor.
You should get free debt advice before you consider taking out a secured debt consolidation loan, as they’ll not be right for everyone and you could just be storing up trouble or putting off the inevitable.