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.

It lets you consolidate debt in one place, rather than juggling several payments to different lenders each month (and remembering the different interest rates). With a debt consolidation loan, you can make one fixed payment to a single lender.

There are two types of loans: homeowner (also called secured) and personal (also called unsecured). The debt consolidation 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?

They let you consolidate debt by using 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 – but consolidation loans for bad credit could offer a great solution.

Here at Ocean, we specialise in debt consolidation loans for bad credit borrowers. 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 debt consolidation loans, bad credit or not. Loans to pay off debt with bad credit can help improve your financial situation too.

Unsecured loans: 49.9% APR Representative. Ocean, a trading style of Intelligent Lending limited. We are a broker, not a lender. To find you a loan, we work with a preferred lender panel as well as panels operated by other brokers. We will search the lenders in order of who offers the best representative APR, first from our preferred panel and then from the panels of other brokers.

We arrange secured loans from a panel of lenders. We will receive a commission from the lender upon completion. A fee of 10% of the net loan amount, set at a minimum of £995 and capped at a maximum of £3995 is payable upon completion and can be added to your loan. The actual rate available will depend upon your circumstances. Ask for a personalised illustration.