Advantages of a Debt Consolidation Loan 

If you think that a debt consolidation loan is for you, it is important that you are aware of any advantages and disadvantages of your new loan.

Here are some of the Advantages of a UK Debt Consolidation Loan: 

  • Your monthly payment is reduced.
  • A lower interest rate than your unsecured debts.
  • No more hassle from multiple creditors, as they will have all been paid off with your UK Debt Consolidation Loan.
  • Combine all your outgoings into one, which makes it easier for you to manage and arrange your finances.
  • If you find it a struggle making your payments to your unsecured debt, a Debt Consolidation Loan should make it easier as you will be paying less on a monthly basis.
  • As long as you don’t miss any monthly payments, it will help to repair your credit rating.

LOANS MAY BE SECURED ON YOUR HOME. THINK CAREFULLY BEFORE SECURING DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR OTHER DEBTS SECURED ON IT. IF YOU ARE THINKING OF CONSOLIDATING EXISTING BORROWING YOU SHOULD BE AWARE THAT YOU MAY BE EXTENDING THE TERMS OF THE DEBT AND INCREASING THE TOTAL AMOUNT YOU REPAY.

For mortgages and re-mortgages the overall cost for comparison is 8.5% APR variable and for secured loans 14.5% APR variable. The actual rate will depend upon your circumstances. Ask for a personalised illustration. A broker fee may be payable on completion, and will depend on your circumstances. For mortgages and re-mortgages this fee is typically between 0% and 3% of the gross mortgage amount, subject to a minimum of £2,495 and a maximum of £3,995. For secured loans, the fee is typically between 0% and 10% of the loan value.



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UkDebtConsolidationLoan.com is a trading name of Ask Finance Ltd which is registered in England and Wales (company number 4229724), Jackson House, Sibson Rd, Sale, Manchester, M33 7RR. Ask Finance is licensed under the 1974 consumer credit act to carry on the business of consumer credit, consumer brokerage, debt adjusting and debt counselling. Consumer Credit License No: 507130. Ask Finance is authorised and regulated by the Financial Services Authority (FSA) - FSA No: 300490 - for the provision of mortgage advice and arranging insurance.

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