What is a debt consolidation loan?
Simply put, a debt consolidation loans enables you to move all of your borrowing (or a large amount of it) onto one unsecured loan.
As a general rule, borrowers take out these types to loans to consolidate multiple debts into one. For example, a debt consolidation loan could combine outstanding balances on a store card, a credit card, and a loan.
Is a debt consolidation loan right for you?
It is always worthwhile understanding both the advantages and disadvantages of a debt consolidation loan. They are after all not for everyone. Before you apply, have an idea on how much you need to borrow. With Monevo, you can apply for a loan to consolidate your debt up to a value £25,000.
Advantages of consolidation loans:
- All or a majority of your debts are now in one place
- Budgeting becomes more straightforward
- Improves your chances of improving your credit rating if repayments are up to date
Disadvantages of consolidation loans
- Interest rates may be higher due to your creditworthiness
- You may be subjected to arrangement fee's and/or early repayment penalties
How quickly will you get your money?
There is not a simple answer to this as each and every applicant is very different. By applying through Monevo, our technology will search our panel of leaders instantly and if your application is successful, we will return you a loan offer within a couple of minutes. The accepting lender will require additional details from you and providing you return everything to them straight away, they are no reason why the loan would not be in your bank within a working day.