You can use a debt consolidation loan to pay off some or all your existing debts. For example, if you have credit card debt, personal loan debt, an overdraft or owe money on a store card, you could take out a debt consolidation loan to pay these off.

Just go ahead and apply; you don’t need to join first. We’ll register your free membership along the way.

We aim to respond within one working day. It may take a little longer if we need additional information, in which case we will contact you.

If you have multiple loans, credit cards, or frequently use your overdraft, a consolidation loan could simplify your finances and even lead to savings. Our options may be more beneficial than you think. Apply today to see what we can do for you.

We’re here to help, and there are several ways you can reach us. Visit our Contact Centre for all the details.

We may need to look over your bank statements to complete a full assessment of your loan application. The quickest and easiest way to submit your bank statements is through Open Banking via our trusted partner, Consents.online. Open Banking gives us secure read-only access to view your account statements.

With this information, we will:

• Verify your income
• Carry out an affordable credit assessment
• Be able to make a responsible lending decision

Consents.online is registered with and regulated by the Financial Conduct Authority to act as an Account Information Service Provider.

Applying for a debt consolidation loan does have implications for your credit score. The process typically involves a hard enquiry—a detailed check of your credit history by the lender. This enquiry may cause a slight dip in your credit score, but it's generally temporary.

Long-Term Effects

The real impact on your credit score largely depends on how you handle the loan:

• On-Time Payments: Successfully making all your monthly payments on time can enhance your credit score over time. It demonstrates financial responsibility and establishes a pattern of good credit behaviour.

• Missed Payments: Conversely, missing payments can negatively impact your credit score. Late payments are reported to credit bureaus, which can keep a record on your credit report.

In essence, a debt consolidation loan can be a tool for credit improvement if managed wisely, but could pose risks if repayments become inconsistent.

Taking control of your debt consolidation loan is crucial for maintaining financial stability. Here’s how you can manage it efficiently:

Consider Early Repayment Options

If your financial situation allows, paying off your loan ahead of schedule can save you money in interest. Be aware that some lenders might charge a fee for this option, so it’s important to understand the terms before proceeding.

Make Overpayments

Take advantage of making extra payments towards your loan whenever you can. This strategy helps lower your principal balance faster, ultimately reducing the amount of interest you'll pay over time.

Utilise Financial Management Apps

In today's digital age, financial management apps like Mint or YNAB (You Need A Budget) simplify tracking your payments and financial health. These tools consolidate all essential information in one accessible location, making management straightforward.

Adjust Your Payment Schedule

Life can be unpredictable, and a flexible payment schedule can ease budget constraints. Contact your lender to adjust your payment dates according to your cash flow. This flexibility prevents missed payments and helps you avoid unnecessary fees.

By utilising these strategies, you can maintain control over your debt consolidation loan and work towards a debt-free future.

When considering a debt consolidation loan, it’s crucial to understand what expenses are off-limits. Responsible lending ensures both the lender and borrower are protected. Here’s a list of things you cannot finance with a debt consolidation loan:

• Property Purchases: This includes homes, land, or any kind of property.
• Home Deposits: Funds cannot be used as a deposit for buying a property.
• Daily Living Expenses: Routine payments such as household bills, rent, or mortgages are not eligible.
• Vehicle Tax: Paying for car tax isn’t permitted.
• Corporate Expenses: Loans aimed at business investments or expenditures are restricted.
• Tax Evasion Strategies: Any schemes designed to avoid taxes are prohibited.
• Legal Costs: Court fees or solicitor charges are not allowed.
• Gambling Activities: Using these funds for betting in casinos, lotteries, or online games is forbidden.
• Stock Market Investments: Purchasing shares, stocks, or any investment funds is not permissible.

Always ensure you’re using funds for their intended, approved purposes to avoid any complications.