What is a debt consolidation loan?

A debt consolidation loan offers you a way to merge all of your outstanding unsecured debts (like credit cards, store cards, overdrafts and personal loans) into a single debt.

Rather than juggling several monthly payments to different lenders each month (and remembering the different interest rates), you can make one fixed payment to a single lender.

There are two types of debt consolidation loans: secured and unsecured. The loan you choose depends on a few things, like how much you need to borrow, whether you own your home and how long you’d like the loan term to last.

How do debt consolidation loans work?

You use the money from a debt consolidation loan to pay off any outstanding debts you have. This means you no longer owe money to multiple lenders.

Once you’ve cleared your existing debts, you will then make a single, more manageable monthly payment to one lender to clear your new loan.

Debt consolidation loans for bad credit

If you have a bad credit history, some lenders may not accept your application for a debt consolidation loan. If you have missed payments in the past, there’s a risk you’re an unreliable borrower who could do so again.

Here at Ocean, we specialise in loans for people with bad credit histories. Even if you have a thin credit history, you’ve missed payments before, or you’ve been issued with a CCJ, we will still consider you for a debt consolidation loan.

Unsecured loans : 44.9% APR Representative. Ocean is part of Intelligent Lending Limited. We are a broker for the Ocean personal loan. R Raphael & Sons Plc are the lender. We will not charge you for arranging your personal loan but, if your application completes, the lender will pay us for our services.

We arrange secured loans from a panel of lenders. We will receive a commission from the lender upon completion. A fee of 12.5% of the net loan amount, capped at £2975, is payable upon completion. The actual rate available will depend upon your circumstances. Ask for a personalised illustration.