Debt Consolidation Loans

Debt Consolidation Loans

Debt consolidation loans can restructure your existing credit into one manageable payment at a level more comfortable for your monthly household budget.

It can be quite difficult to keep track of payments to several lenders, especially if they are credit cards and require you to remember to pay them each month by the due date, but a debt consolidation loan could make life a lot simpler by having just one payment going out at the same time each month by direct debit.

Rearranging your credit via a consolidation loan could significantly reduce the amount you pay back each month and can be tailored accordingly to meet your budget, although it is important to remember that the longer period you take the secured loan over the more interest you will repay over the term.

Many people taking out a debt consolidation loan do so to reduce their monthly outgoings in the short term with a view to potentially repaying the loan early at some point in the future, often by remortgaging. Many loans have low or no early repayment charges, meaning you are not tied in for any specific period and do not have to pay high penalties if you want to clear your loan early.

It is also quite common for people to use just part of their loan for credit consolidation, whilst at the same time releasing additional money for things like home improvements or a special purchase.

Caboodle have access to many consolidation loan plans via the specialist packagers we are able to refer to. We also have access to a wide range of debt consolidation remortgage plans which your adviser will be able to discuss with you if you feel this option may also be of interest.

Frequently asked questions about consolidation loans

How much can I borrow on a debt consolidation loan?

– The amount you can borrow is dependent on a number of factors including the available equity in your property, your credit history and employment status. Caboodle are able to help customers in most circumstances including those who are self employed and those with adverse credit history

What debts can I use my consolidation loan to clear?

– A debt consolidation loan can be used to clear any outstanding debts you may have. They are most used to clear high-rate credit and store cards as well as other personal loans and bank loans

Is a consolidation loan right for me?

– This depends on your individual circumstances and requirements. A debt consolidation loan can potentially help some people by making things simpler, whether they are managing their finances well or if they are struggling with their existing repayments. People with severe debt problems may also wish to consider other potential solutions such as Debt Management.

Debt consolidation is not always the most suitable option and consolidating debts must be carefully considered as it can sometimes mean paying more interest over a longer repayment term. You should think carefully before securing other debts against your home. There are other ways to manage debt which may be more suitable for you such as free debt advice charities. You can find out more by contacting the Money Advice service.

https://moneyadviceservice.org.uk/en/tools/debt-advice-locator

Consolidate your debts today with a Caboodle Debt Consolidation Loan

Following some changes in regulation, Secured Loans are now commonly referred to as “second charge loans” or “second charge mortgages”.

Representative 7.65% APRC. Loans subject to status.

Representative example: Assumed borrowing of £20,000 over 120 months, with a borrowing rate of 5.9% per annum. There would be 120 monthly instalments of £235.50. Total amount payable is £28,260 comprised of; loan capital (£20,000); interest (£6,770); broker fee (£995); lender fee (£495). This would result in an overall cost for comparison of 7.65% APRC.

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. CONSOLIDATING DEBTS MAY INCREASE THE TERM AND TOTAL AMOUNT PAYABLE.

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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. CONSOLIDATING DEBTS MAY INCREASE THE TERM AND TOTAL AMOUNT PAYABLE.

Your initial consultation is free and you are under no obligation to proceed with a mortgage we recommend. There will be a fee for our mortgage advice which will range from £495 to £1,495. The level of fee will be determined by the amount of work we expect to undertake in arranging your mortgage and we will discuss and agree this with you before you make an application. Please ask for a personalised illustration.

The guidance and/or advice contained in this website is subject to UK regulatory regime and is therefore restricted to consumers based in the UK.

Caboodle Financial Services Ltd, registered in England and Wales at Mere Green House, 46-48 Mere Green Road, Sutton Coldfield, West Midlands B75 5BT (number 08044670).
Caboodle Financial Services Ltd is an appointed representative of PRIMIS Mortgage Network (PRIMIS), a trading name of Advance Mortgage Funding Ltd which is authorised and regulated by the Financial Conduct Authority. PRIMIS is only responsible for the service and quality of advice provided to you in relation to mortgages, protection insurance and general insurance products. Any other product or service offered by Caboodle Financial Services Ltd may not be the responsibility of PRIMIS and may also not be subject to regulation by the Financial Conduct Authority. The Financial Conduct Authority does not regulate some forms of Buy to Let.

© 2023 Caboodle Financial Services Ltd