Are you someone who is struggling with debt? Credit consolidation may be a great solution for you.

However, credit consolidation can be expensive. In this guide, I’ll be talking about how you can find inexpensive or free consolidation and whether it is worth it when it comes to dealing with your creditors and debt management.

Let’s get right into it.

What is Credit Consolidation?

Debt consolidation, to put it simply, is a procedure where you take out a large personal loan that is equal in value to the loans you owe. The aim is to get it at a lower interest rate than the debt that you currently owe.

In essence, consolidation allows you to combine all your debts into one and focus on repaying only one large debt instead of several smaller loans.

One of the primary reasons why people get a personal loan for debt consolidation is to make your debt easier to manage. 

If you get a large loan at a lower interest rate than what you owe on your existing debt, you’ll potentially have to pay a lower total amount than you otherwise would.

free credit consolidation

Can You Get Free Debt Consolidation?

Free debt consolidation is something a lot of people would be tempted by if they know they don’t have the income to afford both monthly payments and the charges that come with personal loans for consolidation.

In such a scenario, they may want to get free personal loans that don’t affect their credit report too much, are easily payable via monthly payments, and they can make sure that they’re affordable.

So the short answer is yes. You can get a free new loan for debt on your credit cards, overdrafts, or other loans that you owe. 

However, free debt consolidation is not easily available for many people and may not come at favourable terms. Some companies that are registered in england and wales and regulated by the financial conduct authority may offer free consolidation.

Is it a Bad Idea to Get a Credit Consolidation Loan?

Not necessarily.

It depends on your financial circumstances, the amount of money you owe, the type of debt you owe (such as credit card debt), and your income.

In general, credit consolidation helps you manage your debt better, and a company that gives you the right information can be invaluable to you in paying your debt back.

However, if you’re incurring a huge cost on setting the payments up, then it’s probably not worth it. 

When You Will Need Free Consolidation?

You’ll need free consolidation loans when you know you can’t afford the charges associated with a consolidation loan.

If you’re struggling to get by, if your credit score is taking a hit, if you know you can’t get a debt consolidation program that incurs costs, and so on, it may be time to consider a free loan.

Types of Free Debt Consolidation – Secured and Unsecured

If you’re looking to get a free loan, you’ll find two types of free loans out there – secured and unsecured.

A free secured loan is one which you’ll get only if you put up some asset of yours as collateral and mention it in the application form.

On the contrary, a free unsecured loan is one where you don’t need to put up any asset of yours as collateral.

If you need more information on the differences between these loans, you can contact me or check my website out. The website has lots of content you may find useful.

How to Find Free Consolidation Services?

If you’re looking for free consolidation services for what you owe, be it on your credit card or your home, these are some of the loans you may find useful:

  • TSB 
  • AA
  • Hastings
  • Zopa 
  • Monevo
  • Leap

FAQs

Is it possible to get free debt consolidation loans?

Yes, it is entirely possible to get free loans. 

You’ll find several companies that are willing to set you up without asking for any charges or costs.

While this is great, and while they really are completely free, you need to watch out for the interest rates on their services. Also, a lot of adverts you see about free loans may not be genuine. You need to know where to look.

Can I get a free debt consolidation loan with a poor credit score?

You can, but it depends on your credit scores. For one, you may be able to get the money, but it’ll come with very high interest.

Where can I get a free debt consolidation loan from?

Search up the web pages of popular consolidation companies. You’ll find many companies offering free loans. Some noteworthy ones include TSB, AA, Leap, Hastings, and some others.

Is consolidation right for me?

It definitely can be.

If you’re someone who is having difficulty managing their debt, particularly like debt on credit cards, you should combine your outstanding loans into a single large loan.

As general information, remember that consolidation is supposed to make management easier for you in many ways. If it doesn’t, and if your credit score is going down as a result, it’s not right for you.

Should I get a secured debt consolidation loan?

It depends.

Getting a secured credit consolidation loan may be a lot easier than getting an unsecured loan. Also, you may get it at a lower interest rate than you would get an unsecured loan, since you’re putting up an asset of yours as collateral.

However, as it pertains to payments and your credit score, a secured loan can cost you dearly if you fail to make regular payments. You could end up losing your house, vehicle, or another asset of yours.

Wrapping it Up

This guide intended to help you learn more about credit consolidation, where you can get it for free, why you should get it for free, how it can help you with debt management, what credit scores make it easier for you to apply for a new loan, and so on.

I hope this guide helped you tremendously. If you need more information, feel free to reach out.

About the author

Scott Nelson

Scott Nelson is a financial services expert, with over 10 years’ experience in the industry, including 6 years in FCA regulated companies. Read more
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