We use cookies to help us improve and protect our services. By continuing to use the site, you agree to our Privacy and Cookies Policy

Debt Consolidation Loans

Need to consolidate your debt? Check your eligibility with Creditspring today and pay off those existing debts!

Check eligibility

Membership fee

£10/month

2 loans per year

£500 | £500

Repay each loan in

6 months

Rep. APR

43.1%

Start building your credit today and access your first loan after 14 days.

Representative example: Total amount of credit of £1,000 over 12 months. The first payment for each advance is £83.35 followed by 5 monthly repayments of £83.33 and 12 monthly membership payments of £10. Rate of interest 0% p.a. (fixed). Representative 43.1% APR. Total amount payable £1,120.

Membership fee

£8/month

2 loans per year

£250 | £250

Repay each loan in

6 months

Rep. APR

77.3%

Start building your credit today and access your first loan after 14 days.

Representative example: Total amount of credit of £500 over 12 months. The first payment for each advance is £41.70 followed by 5 monthly repayments of £41.66 and 12 monthly membership payments of £8. Rate of interest 0% p.a. (fixed). Representative 77.3% APR. Total amount payable £596.

Membership fee

£5/month

2 loans per year

£100 | £200

Repay each loan in

6 months

Rep. APR

87.5%

Start building your credit today and access your first loan after 14 days.

Representative example: Total amount of credit of £300 over 12 months. The first payment for the first advance is £16.70 followed by 5 monthly repayments of £16.66. The first payment for the second advance is £33.35 followed by 5 monthly repayments of £33.33 and 12 monthly membership payments of £5. Rate of interest 0% p.a. (fixed). Representative 87.5% APR. Total amount payable £360.

Debt Consolidation Loans

Need to consolidate your debt? Check your eligibility with Creditspring today and pay off those existing debts!

Check eligibility

Membership fee

£10/month

2 loans per year

£500 | £500

Repay each loan in

6 months

Rep. APR

43.1%

Start building your credit today and access your first loan after 14 days.

Representative example: Total amount of credit of £1,000 over 12 months. The first payment for each advance is £83.35 followed by 5 monthly repayments of £83.33 and 12 monthly membership payments of £10. Rate of interest 0% p.a. (fixed). Representative 43.1% APR. Total amount payable £1,120.

Membership fee

£8/month

2 loans per year

£250 | £250

Repay each loan in

6 months

Rep. APR

77.3%

Start building your credit today and access your first loan after 14 days.

Representative example: Total amount of credit of £500 over 12 months. The first payment for each advance is £41.70 followed by 5 monthly repayments of £41.66 and 12 monthly membership payments of £8. Rate of interest 0% p.a. (fixed). Representative 77.3% APR. Total amount payable £596.

Membership fee

£5/month

2 loans per year

£100 | £200

Repay each loan in

6 months

Rep. APR

87.5%

Start building your credit today and access your first loan after 14 days.

Representative example: Total amount of credit of £300 over 12 months. The first payment for the first advance is £16.70 followed by 5 monthly repayments of £16.66. The first payment for the second advance is £33.35 followed by 5 monthly repayments of £33.33 and 12 monthly membership payments of £5. Rate of interest 0% p.a. (fixed). Representative 87.5% APR. Total amount payable £360.

What is a Debt Consolidation Loan?

If you need to consolidate debt, the usual solution is to take out debt consolidation loans to pay off those existing debts. However, these loans come with additional costs attached as well as some risks, so it's essential to understand what taking out one of these loans involves before making an application for credit.

Debt consolidation loans are a form of a loan which can be used to combine an individual’s existing debts into a single pot. 

Borrowers make an application for a loan for the full amount of what they currently owe. If their application is approved, those funds can then be used to pay off the other loan  completely. 

The new loan will then be paid off over time, typically in a specific number of monthly repayments. 

Debt consolidation loans are designed to make debt simpler to manage while also reducing the amount of interest you're required to pay. This is done by bringing all your debt together in a single location at a lower rate of interest.

Our members love Creditspring 💙

Is It A Good Idea to Get a Debt Consolidation Loan?

There are some advantages to taking out a debt consolidation loan, although they aren't suitable for everybody. 

If you choose to use a debt consolidation loan, you'll only need to pay a single organisation every month, making it simpler to manage your budget. 

However, the payments to that single organisation may be substantial, and the term of the loan may belong. This will cause you to pay more overall across the loan's entire term. 

For this reason, it's vital to check whether you can afford to make the repayments before taking out a debt consolidation loan.

If you are already finding it hard to pay back your existing debts, you may struggle to afford to make payments towards your debt consolidation loan. 

If you have only a few debts and already have a low APR, it could be worth focusing on your current repayment plans rather than taking out a new line of credit.

Alternatively, if you have only modest credit card debt, you may prefer to take out a new 0% interest balance transfer card as an alternative. 

Conversely, if you have very substantial debts and are finding it hard to make your repayments, you may find that choosing a debt management plan is a better choice for you.

Advantages

  • You can potentially lower the amount you have to pay each month by spreading your debt over an extended period.

  • You can potentially reduce the amount of interest you have to pay, particularly if some or all your current debts have a high rate of interest.

  • You can improve your credit score by making manageable and regular repayments.

  • It’s simpler to manage your debt since you’ll only be paying a single organisation, not several.

Disadvantages

  • If you miss payments on your debt consolidation loan, you'll find your credit score takes a significant hit.

  • Any possible savings you make could be cancelled out by the extra fees and charges you must pay to settle your existing loans or set the loan up in the first place. You could even end up paying more than your original amount.

  • If you've taken out a secured debt consolidation loan, you could lose your car or home if you default on your repayments.

Use our free eligibility checker to see if you’ll be accepted

Can I Get a Debt Consolidation Loan with Bad Credit?

Although debt consolidation loans are a helpful solution, it's important to remember that if you have experienced or are experiencing debt problems, you may not be able to obtain this type of loan. 

This is because lenders view those with a poor credit history as a risk and prefer not to lend to them. 

You may be able to secure a debt consolidation loan from certain lenders if your credit score is poor, but you won't be able to access the best deals. 

The interest rates you will be offered will be significantly higher, and you may not be able to borrow as large a sum as you require.

However, there are some lenders who specialise in providing loans to those with bad credit. 

Again, the deals you are likely to be offered won’t be the most attractive, but they will enable you to gain access to the funds you need to pay off your existing debts.

In some cases, people with poor credit may find that providers will only offer them a debt consolidation loan if it is secured against their property rather than offering them an unsecured loan. 

This could be a good choice, but only if you're confident you can make all your repayments as otherwise, your home will be at risk.

On the upside, if you’re able to make your debt consolidation loan repayments on time, you should see your credit score improve over time.

What Is the APR On a Debt Consolidation Loan?

The interest rate on any debt consolidation loan will vary depending on the duration and size of the loan. 

Loans that extend over a longer period could have a lower interest rate, but the repayments will need to be made over a longer timeframe, leading to paying more in the long run.

Borrowers who have a poor credit record will find that the rate of interest they are charged on their debt consolidation loan will be higher.

Can I Use This Loan to Pay Off Other Debts?

If you take out a debt consolidation loan, you can use it to pay off a wide variety of kinds of debt, including:

  • Debt on credit cards. Many credit cards charge a high APR, making them a costly way of borrowing in the long term.

  • Debt from personal loans. You may have taken out one or more unsecured loans to pay for a holiday, home improvements, a car, or other unexpected expenses.

  • Overdrafts. Interest rates can be high on overdrafts, and, over time, this can lead to a large amount of debt.

  • Store cards. Many store cards will offer attractive discounts on upfront spending, but high fees and APRs creep in over time.

Examples of how you can use loans

So, for example, if you owe £1000 on your credit card, another £1000 on your store card, have a loan of £2000 and have an overdraft of £1000, you can apply for a debt consolidation loan for £5000 to pay them all off in one go. 

You will then repay that total amount back to a single loan company over a specified period.

While some personal loans could be used to consolidate debts, some lenders want borrowers to use their loan for a specific purpose, for example, home renovations or purchasing a vehicle. 

Therefore, you need to check before applying that the loan you choose is suitable for debt consolidation. If your debts are large, you may also discover that you don't qualify for low-cost personal loans.

How Can Creditspring Help?

A Creditspring membership is an excellent solution if you need to pay off expensive debts. Over time, many people build up debts with several organisations and institutions, all at different rates of interest and periods.

This can lead to repayments on different dates and in different amounts, so it isn't too surprising that this becomes very confusing and can lead to overpayments or missed payments.

Consolidating your debt could be an excellent choice if you want to find a way to budget more effectively, reduce the amount of interest you pay, and make your life simpler.

If you have several small debts that attract a high rate of interest and you're able to access other lines of credit, it certainly makes sense to take out a new, cheaper consolidation loan to pay them off and simplify your situation. However, depending on your circumstances, you may find that the right debt consolidation product for you could differ. You may find large debt consolidation loans out there, but consolidating smaller debts is also possible.

Creditspring helps our members consolidate debts that are small yet expensive. By doing this, it has been able to help many members escape costly payday loans and expensive overdrafts.

Am I Eligible?

Creditspring will let you know if you’re eligible for our products within seconds of making your application, but you can rest assured that simply checking whether you’re eligible won’t have a negative effect on your credit rating.

Is a Creditspring Consolidation Loan the Right Option for Me?

If you're struggling to work out whether consolidating your debts is right for you, it's possible to seek advice online or from several agencies. 

When it comes to consolidating debt, the thing to keep in mind is making sure that the new loan you're taking on will completely cover your old debts while also being a suitable and affordable repayment structure.

Although Creditspring isn't the most obvious choice for obtaining a debt consolidation loan in the UK, many members have used their Creditspring loans for precisely this purpose. 

As a Creditspring loan has no interest and comes with capped costs, it’s an excellent way to consolidate your high interest debts safely and simply.

Why not check whether you’re eligible now? Just fill in your details here. It’ll take just 60 seconds and won’t harm your credit rating!