Debt Consolidation Loans for Bad Credit
Can I get a consolidation loan if I have bad credit?
If you have bad credit, you still have options when it comes to consolidating debt. You’ll need to compare your options and be sure you match the lender’s criteria before you apply but a debt consolidation loan can be a way to pay off smaller existing debts (including loans and credit card bills) whilst saving you money on interest and reducing your number of monthly repayments.
Is consolidating my debts a good idea?
Depending on your loan amount and the interest rate offered on a debt consolidation loan, you could save yourself time, stress and money.
When considering a debt consolidation loan make sure the interest you will be charged is the same (or hopefully less) than what you are paying across all your current debts. If not, consolidating your debts may not be the best option. It’s also worth considering any early repayment fees on your current debts as these may make consolidating debts more expensive than staying as you are.
That being said, a consolidation loan may give you a clearer view and understanding of your debts making it easier to take control. You may find that budgeting your finances becomes simpler, helping you to focus on controlling your money and your spending.
How to find a bad credit debt consolidation loan
In our comparison table above, we’ve compiled lenders who offer debt consolidation loans and consider applicants with bad credit.
Before you can find the right loan, you should work out how much you owe in total. You will also need to look at how much you may be charged for early repayment fees or double check you’re even allowed to pay off your current loans early.
Now have a look at your budget - you can use our trusty budget planner tool for this. Work out how much you can afford to spend on your debt consolidation loan each month.
Once you’ve got your finances sorted and you think a bad credit debt consolidation loan is still the right option, you can go on to compare the deals and lenders in the table above. Alternatively, know where you stand with our free loans eligibility checker.
When comparing loans, make sure you match the minimum criteria and can afford the repayments. Flexible loans allow you to make overpayments or pay off your loan early. As you start to take control of your finances, overpaying can save you hundreds in interest so it’s worth considering whilst comparing options.
Debt Consolidation: What else can I do?
It might feel like your debts are stealing all your income and there is no way out. The important thing to remember is that you’re not alone, lots of people are in your position and there is plenty of help available.
There are a number of debt solution options.
Facing debt when you’ve got bad credit can feel like you’re between a rock and a hard place but you’ve got options to help you better handle your debts. Bad credit debt consolidation loans are not a quick fix and should be thoroughly thought out before you apply. For more information, go to our ‘What is a debt consolidation loan?’ guide.