Consolidation Loans

A debt consolidation loan from Caboodle could assist you in rearranging your existing credit into one manageable payment at a level more comfortable for your monthly household budget.

It is often 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 of time 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. This again provides the benefit of not only rearranging their existing credit into one manageable monthly payment but allows them to raise money for other things at the same time.

At Caboodle we have many consolidation loan plans available which can be used for full or part consolidation and your adviser will discuss these with you when you enquire. 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 commonly used to clear high rate credit and store cards, other personal loans and bank loans, car loans and hire purchase agreements

Is a consolidation loan right for me?

– This depends on your individual circumstances and requirements, which your Caboodle adviser will discuss with you. A debt consolidation loan can potentially help most 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, which again your Caboodle adviser can discuss with you.

Debt consolidation is not always the most suitable option, consolidating debts must be carefully considered. It will usually mean more interest over a longer repayment term and there may also be early repayment penalties on your current mortgage, you should think carefully before securing other debts against your home. There are other ways to manage debt such as free debt advice charities, you can find out more by contacting the Money Advice Service https://www.moneyadviceservice.org.uk/en/tools/debt-advice-locator these services may be more suitable for you.

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”. This terminology may be used when we speak to you about your requirements and in documents you receive as part of the process.

The secured loans process is simple, either complete the short online enquiry form and a Caboodle adviser will contact you, or call us at no obligation on 0800 151 2407 or 0121 308 9114.

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.