Select Loan Amount

£1,500

Select Loan Term

18

Your loan details

You want to borrow: £1.500
Over a period of: 18 months
Repaying: £113.07 p/m
Total repayable: £2,023.75
Interest rate: 41.16% (fixed)
Representative: 49.9% APR
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Borrow up to £7,500 with the UK's friendliest Debt Consolidation Loans website

Representative Example
Credit £3,250 for 36 months | Interest (fixed at 41.16%): £2,464.57. | Total amount payable of £5,714.67.
Representative 49.9% APR. | 36 repayments of: £158.57.

Need to Consolidate Your Debts?

Let Buddy Loans Help!

Documents

Would life be easier just making one payment for your accounts each month?

Interest

Are you paying 20%, 25% or more interest each month on credit cards?

Bills

Are you stuck in the payday loan cycle and can't break free?

Consolidating various accounts and bills you may have is a good way to reduce your monthly payments, and also a way to save on the interest you may be paying.

Think of a consolidation loan as an umbrella loan. You are covering many smaller loan or accounts all under one loan or umbrella.

By consolidating the accounts together as one account, you can decrease your monthly outgoings, which can free up money to put into savings, or to be used to pay off the accounts at a quicker rate.

A debt consolidation loan is a loan that is taken out to pay off many smaller accounts. It is usually used to consolidate credit cards, or other accounts that may have a high interest rate.

Many credit cards have interest rates of 20%, 25% or even higher. If you have a balance on a credit card and only pay the minimum monthly payment, which can be 2.5% to 3% of the balance, and the interest rate is over 20%, you could be paying for over 10 years or more to pay the card off.

Debt Tax

The basis of a debt consolidation loan is to consolidate these high interest rate accounts, such as credit cards, into one (1) monthly payment. And one (1) monthly payment can make life much easier.

Some people spend hours each month not just deciding which bill to pay, but when to pay them. Bills are due at different times of the month, and if you are struggling to pay one, then you need to juggle the bills.

Consolidate Your Debts In 3 Easy Steps:

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01.

Find a
Guarantor

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02.

Complete our Easy
Online Application

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03.

Get Approved and Reduce Your Monthly Bills

Consolidating the accounts makes it that you have just one monthly bill to pay.

This monthly payment in some instances, may be even less than what the borrower was paying each month on the consolidated accounts all together.

The consolidation loan provides a light at the end of the debt tunnel. You know when you will be out of debt, and not in 10 years or more if you paid the credit card's minimum payment, unless 10 years is the term for the consolidation loan.

What do Debt Consolidation Loans Offer?

  • A fixed term. Credit cards are a revolving credit account. A loan can have a fixed term of 24 months, 36 months or more.
  • You can be paying less each month to the one consolidation loan payment, then to all the smaller accounts you are consolidating.
  • A lower interest rate/APR than the majority of credit cards.
  • You know when you will be out of debt.
  • A way to pay off and break out of the payday loan spiral.

Consolidating credit cards and other accounts can be a good money management tool. If by consolidating 4 accounts, a credit card, a loan, an overdraft, and a payday loan, of which the total minimum monthly payments are £466. By consolidating these accounts into one loan, and having a lower interest rate and better terms, your monthly payment may be around £296 a month, which is a saving of £170 a month!

In addition you are saving interest each month, and you will be out of debt in much quicker time frame.

If you pay the extra money you save each month on the consolidation loan, you can be out of debt at an even faster rate.

However, you need to know and understand what brought you to the point of needing a consolidation loan as well.

Paying off a few credit cards, only to use the credit cards again and run up balances on them, now on top of a consolidation loan is a recipe for financial disaster.

If this were to occur, you would then have the monthly consolidation loan payment in addition to any new credit card balances to repay.

When do Debt
Consolidation Loans
Make Sense

  • You are cutting your expenses down and the monthly payment will be less than the cards or loans you are consolidating.
  • The consolidation loan's interest rate is lower than the loans or cards you are consolidating.
  • You pay less interest than you would on the credit cards or other loans.
  • You can use the loan as a way to cut back on your spending, and possibly save money as well.

When Debt Consolidation Loans May Not be The Answer

  • The loan will not pay off the majority of the debts you want to include in the loan.
  • You cannot afford the monthly payment.
  • You require more than just paying off the accounts, you need professional advice from a debt advisor as to your options.

Some consolidation loans may charge fees to apply, or fees once you are accepted. In some cases these fees may be added to the loan. Be aware of these fees, and read all the fine print on any agreements.

Benefits of
Consolidation Loans

Benefit
  • Only one (1) loan payment each month.
  • Extended loan terms, which can reduce the monthly payment.
  • Lower interest rates than what you are currently paying on high interest rate credit cards.
  • Reduced monthly payments.
  • A way to break the Payday loan trap.

Are Debt Consolidation Loans Right For Me?

There is a saying, "you cannot borrow your way out of debt".

Debt consolidation loans are not for everyone, and not everyone will qualify for such a loan. If you are struggling with a few loans and by consolidating them together it reduces your monthly payment and makes your finances improve, then possibly a consolidation loan is a good choice.

Debt Consolidation

Need to Consolidate Your Debts and Have Bad Credit...
Not a Problem!

Credit Score

A Buddy Debt Consolidation Loan has no upfront fees, competitive interest rates, and credit scoring is not used to approve the loan. If you have a good buddy, you can qualify for a Buddy Consolidation Loan.

Past credit issues are not a problem!

If you are struggling with your bills, credit cards and other loans due to the fact the monthly repayments for all of them are high, then a consolidation loan may make sense.

  • Are you struggling with your monthly debt repayments?
  • Are you receiving notices of late payments here and there each month?
  • Are you having to decide who to pay and when to pay them?
  • Are the interest rates on your credit cards and other loans too high?
  • Would one monthly payment make life easier and reduce whatyou have to pay each month?

Then a Buddy Consolidation Loan may be what you need!

Consolidate Your Debts Through Buddy Loans

  • One lower monthly payment
  • All your accounts under one loan
  • Reduced monthly payment
  • Lower interest rate
  • Peace of mind

What do you need to do a Buddy Loan?

Handshake

You need someone to guarantee the loan, a good buddy, a family member or friend.

They don't need to be a homeowner, but they do need good credit.

How Bad is a Debt Consolidation Loan For Your Credit?


Credit Score

Debt consolidation loans in themselves do not affect your credit in a negative manner.

In fact, it can and should affect your credit score in a positive manner.

Your credit score is made up of many components:

  • Payment History
  • Amounts you owe
  • Types of credit
  • New credit
  • Length of credit history

Your payment history makes up 35% of your credit score, and your account balances make up 30% of your credit score. These are the lion's share of your credit score.

If you miss a few payments, or have some late payments, it has a huge impact on your credit score.

If you have your credit accounts, or credit cards near their limit, this is also going to have a large, negative affect on your credit score.

When you apply for a debt consolidation loan, it will appear as new credit, an inquiry or footprint will show on your credit report. However, once the other accounts are paid off by the consolidation loan, they will show zero balances.

So in effect, you only show one (1) open account with a balance.

This can improve your credit score!

The main concern is to not use the now paid off accounts and run up any balances on them again. Cut the credit cards up, or as long as they are not some of your oldest accounts, close them completely.

A Buddy Consolidation Loan may be just what you need to help you in improving your credit score.


A Buddy Debt Consolidation Loan may be just what you need to help you in improving your credit score.

  • One easy affordable monthly payment
  • Save money and interest
  • Quick online application
  • Fast approvals, usually within 24 hours
  • Bad credit not a problem
Improving credit score

Government Debt Consolidation Loans

You may have heard of companies advertising about "Government Debt Consolidation", or "Write off Up to 80% of Your Debts".

These are misleading ads and are now investigated by the FCA/Financial Conduct Authority, who regulate the credit industry.

There are no government consolidation loans, there is no such product.

The ad regarding writing off your debts is referring to a form of insolvency, IVA's or Individual Voluntary Arrangements.

IVA's are similar to bankruptcy in that you are listed on the insolvency register, and it is a legal proceeding asking for help with your debts.

Buddy Loans does consolidation loans.

  • Easy online application
  • Quick approval
  • Money in your account usually within 24 hours
  • No negative affects on your credit
  • Bad credit no problem
Fake News

Once entered into an IVA you make payments to your creditors of what you can afford, these payments are administered by an Insolvency Practitioner.

You make these payment for a period of five (5) years, and during this time the accounts are frozen to any new interest and charges.

At the end of the five year period, any remaining balances on the accounts is "written off" by your creditors. This is not consolidating your debts in a traditional fashion.

In addition, if you own property, your property can be involved in the IVA and paying back your creditors.

IVA's do impact your credit in a negative way, just as bankruptcy does.

Debt Consolidation Loans For Non-Homeowners

Many banks offer debt consolidation loans, and many offer these to homeowners, those that own property with equity.

The consolidation loan can be a secured loan to pay off the other debts/accounts, but the new loan is secured by the property.

This is a way to get a consolidation loan, however, if you were to struggle with the repayments, the property could be at risk.

In addition, many younger people under the age of 40, are not homeowners. And some that are have no equity yet in their properties, so they have nothing to borrow against.

There are loans available that can be used to consolidate debts, without the borrower owning property.

House for rent

Personal Lonas

Personal Loans:

These loans can be unsecured, and for various amounts and terms. The caveats are that they may carry high interest rates due to not being secured, and the borrower may be required to have good credit and a high credit score.

Many borrowers seeking a consolidation loan have neither of these, good credit or a high credit score.

Guarantor Loans

Guarantor Loans:

Loans with a guarantor are also good as consolidation loans, and do not require a good credit history or high credit score. As long as there is someone guaranteeing the loan, it can be approved.

Guarantor loans can also be a good way for someone with bad credit to improve their credit score and credit rating.


Buddy Loans does consolidation loans.

  • Competitive interest rates
  • Flexible terms
  • Guarantor does not need to be a homeowner
  • The loan is not secured by a property
  • Bad credit OK
  • Easy and fast online application process

Can I Get a Joint Loan For Debt Consolidation

When considering a debt consolidation loan, you need to look at the accounts you wish to consolidate. Are these accounts in your name, your partner or spouse's name, or are they jointly held accounts, in both your names.

It is possible for one person to take out a consolidation loan and pay off their outstanding credit cards and other accounts, and possibly even include any jointly held accounts.

This is if they qualify for the consolidation loan and can afford the repayments on their own.

Including someone else's accounts or debts in your consolidation loan, financially doesn't make sense.

These are accounts that you are not liable for, however, if you include them and pay them off by consolidating them in with your accounts, the balances are now your responsibility in your consolidation loan.

The other person is not liable for the consolidation loan as it is in just your name.

Many times when a person applies for a consolidation loan and is including jointly held accounts, both parties will need to be on the loan. This can be due to affordability if both parties are working. By combining incomes, you may qualify for a higher loan amount and be able to include all the accounts you require.


Buddy Debt Consolidation Loans

  • Easy online application
  • Quick approval
  • One easy and reduced monthly payment
  • Saves you money on interest
  • Loan is based on affordability and having a guarantor, not based on credit score

Debt Consolidation Loans For Bad Credit

Bad credit rejected loan application

When you have bad credit, nothing can add insult to injury more than being rejected for a consolidation loan.

The very reason you are seeking a consolidation loan may be because you are struggling to pay the credit cards and accounts you currently have, and also to pay off any payday loans that you rolled over.

The interest rates on credit cards can be over 25%, and the APR's on payday loans can be 1500% to as high as over 2000%!

In some instances the irony is that your bad credit may have been caused by struggling to pay off the high interest rate accounts, and now you may not qualify for a consolidation loan due to having bad credit.

It can seem like a vicious financial and credit circle.

In addition, many of the loans available to borrowers with bad credit, are not the type of loans that can be used to consolidate other accounts.

Balance Transfer

Some people will transfer the balances on their credit cards to other credit cards, in the hopes of reducing their monthly payments.

If you have one credit card with a low interest rate, this can be an option. However, there can be two issues with this:

  • You need to pay as much as you can extra on the card to make use of the lower interest rate.
  • Do you have a high enough credit limit on the low interest rate credit card to transfer all your balances.

In addition, some credit cards charge a balance transfer fee, which can be 2.5% or more of the balance transferred. This needs to be calculated in for any savings.

Guarantor Loans For Debt Consolidation

Having a guarantor for a loan is one way to consolidate your accounts, without the worry of being rejected due to bad credit history.

The strength of the loan and it being approved is on the fact there is someone guaranteeing the loan.

A Buddy Consolidation Loan is a guarantor loan. If you have a good buddy, you can get a consolidation loan, even with bad credit.

  • Reduce your monthly payments
  • Save money on interest paid
  • Bad or poor credit not a problem
  • Affordable monthly instalment payments
  • Quick 24 hour approval
  • Easy online application
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Representative Example

Borrow
£3,250

Term
36 months

Repaying
£158.57 p/m

Total Repayable
£5,714.67

Interest Rate
41.16% (fixed)


Representative 49.9% APR.

Terms and Conditions apply. Suitable Guarantor required. All loans are subject to status and affordability checks prior to approval. All applicants must be 18 or over.

Frequently Asked Questions

Most asked Debt Consolidation Loans related questions

Q.

Is a consolidation loan bad for my credit?

A.

In the long-run, no. The consolidation loan will show on your credit history, and there may be an inquiry showing the lender has reviewed your credit history, but the accounts you pay off with the consolidation loan will now show zero balances. This can help improve your credit score.

Keep in mind, with a Buddy Consolidation Loan, bad credit or a low credit score is not a problem in being approved for the loan. You just need a good buddy and be able to afford the loan.


Q.

I have been rejected for a loan in the past due to bad credit, and am struggling with some credit cards and a catalogue loan. Can you help me consolidate these accounts?

A.

Yes, if you have a good buddy, you can be approved for a Buddy Consolidation Loan.

Bad credit is not an issue, as long as you can afford the loan, and have someone to guarantee the loan, you can be approved.


Q.

I own my own home, is a consolidation loan secured against my property?

A.

Some consolidation loans can be secured against a property. If the loan is secured against a property and you fail to pay the repayments, your property could be at risk.

A Buddy Consolidation Loan is an unsecured instalment loan, which is not secured against any property or other asset. You just need someone to be your guarantor for the loan.


Q.

Who can be my guarantor for a Buddy Loan?

A.

A good buddy/friend, family member, or even a work colleague. Your guarantor just needs to have good credit themselves.


Q.

Does my guarantor need to be a homeowner?

A.

No, your guarantor does not need to be a homeowner, however this does help, but they do need good credit.


Q.

How many accounts can I consolidate with a consolidation loan?

A.

You can consolidate as many accounts as you wish, or as many as your loan will cover to pay off. If you have £5,000 in credit cards, payday loans, and other debts, you can apply for a loan of £5,000 to pay all the accounts off.


Q.

I have a couple of payday loans I have rolled over and need to pay off to get out from under. Can I consolidate them?

A.

Yes, a debt consolidation loan is an excellent way to break free from the payday loan roll over cycle.


Q.

What should I do with the accounts I pay off after they are paid and have a zero balance?

A.

What you do with the accounts you pay off in the consolidation loan is your choice. It may be best to close them so they do not get used again and you then have more bills to pay on top of the consolidation loan.

In closing unused accounts, you don't want to close your oldest account(s) as they help your credit score by showing how long you have been credit active.

A Buddy Consolidation Loan will give you a lower interest rate, and you can extend your payments out to make them easier to afford.


Q.

Will a Buddy Consolidation Loan reduce my monthly payments?

A.

In most instances yes! One of the advantages of doing a debt consolidation loan is that you reduce your monthly outgoings. If you are paying £200 a month to 3 different accounts, with a consolidation loan you will only have one (1) monthly payment, and due to the term of the loan, making payments over 24, 36 months or longer, the monthly payments will be reduced saving you money.


Q.

My consolidation loan is saving me £150 a month. What should I do with the savings?

A.

Put it in a savings account. Use it to pay off your consolidation loan early by paying extra each month. The choice is yours.


Q.

Are there any fees to apply for a Buddy Consolidation Loan?

A.

No, there are no fees to apply for a Buddy Loan. You can use our easy and quick online application to begin the process.


Q.

I have some accounts I want to pay off with a consolidation loan, and they are due in the next few days. How soon can my Buddy Consolidation Loan be approved?

A.

Once we receive your online application, and have yours and your guarantor's details, most loans are approved and the money in your account within 24 hours.

You may wish to speak to who you are going to have be your guarantor prior to applying for the consolidation loan to make the process go smoother and quicker.

You also may want to get current balances for the accounts you wish to pay off with the consolidation loan, so that you have an accurate idea of how much of a loan you require.

01 Apply online using our easy application process.

02 Get approved for your consolidation loan.

03 Pay off your credit cards and other high interest accounts.

04 Breathe easier each month with just one (1) monthly payment and save money.


Minimum period for repayment: 12 months | Maximum period for repayment: 60 months | Minimum APR 49.8% | Maximum APR 49.9%
Representative example: Amount of credit £3,250 for 36 months. Interest (fixed at 41.16%): £2,464.57. Total amount payable of £5,714.67. Representative 49.9% APR (Variable). 36 repayments of: £158.57.