How a consolidation loan works

Here you’ll find all you need to know about how a consolidation loan works and how it could benefit you ~ like it has done for customers across the UK.

How a consolidation loan could benefit you

There is no hidden science or mystery behind how a consolidation loan works. It’s simply a process of replacing expensive unsecured credit with a more affordable secured loan alternative. To demonstrate how straightforward the process can be with a consolidation loan, we’ve provided a real example.

Feel like you’re getting nowhere?

If you feel like you’re getting nowhere because of the amount of interest being added back on to your credit card balance each month, then a low rate consolidation loan could benefit you.

By replacing your credit and store card balances with a consolidation loan you could put a stop to expensive credit card interest charges straightaway, and finally start paying back the credit you owe – faster.

Depending on how much you wish to reduce your monthly outgoings by each month and subject to the interest rates and balances of your existing credit you are consolidating, you may pay back more if you extend the loan over too long a term so it’s import to get the balance right.

It’s also very important to ensure that once you pay off your credit and store card balances with the consolidation loan, that you cancel your cards or ensure you do not continue to use your cards after. This will help you to pay off credit and not build up anymore.

We like to make everything clear and simple so here so it’s easy for you to make the right decision. To help you can see if it’s right for you and also use our debt consolidation calculator so you can see for yourself how you can benefit from a low rate consolidation loan.

TYPICAL 9.5% APRC variable

Rates from as low as 4.6% APRC variable. Our highest rate is 39.9% APRC variable allowing us to help customers with severe credit problems. 51% or more of customers receive our typical rate of 9.5% APRC variable OR LOWER.

Secured Loan Representative Example: If you borrow £15,000 over 15 years at a rate of 9.5% APRC variable, you will pay 179 instalments of £152.35 per month and a final payment of £302.35. Total amount payable of £27,573. This includes the net loan, interest of £10,623, a broker fee of £1,500 and a lender fee of £450. The overall cost for comparison is 9.5% APRC variable.

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.

Loans subject to status and secured on residential property by way of second charge. Consolidating debts may increase the term and total amount payable. Minimum age 18 years. Improve Finance is a credit broker using a representative panel of lenders who specialise in second charge mortgages and receive a commission from the lender on completion of a loan. We charge a fee for our broking services of between 0% and 15% and will inform you of this fee before you decide whether to proceed with the loan.

Rates and fees correct as of 21.01.2018. Improve Finance is a trading style of Willows Finance Limited, Brocastle, Bridgend CF35 5AS. Company registered in England. Registration number 6678545. Authorised and regulated by the Financial Conduct Authority under number 670052, registered under the Data Protection Act No. Z1447660 and are a member of the Association of Finance Brokers.

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