The Nationwide debt consolidation loan might be the answer to your debt nightmare. But before you think about applying, learn more about these personal loans to consolidate debt, right here.
Nationwide Building Society is the biggest financial institution of its kind with more than 15 million customers. The group is the product of over 100 mergers but has humble beginnings dating from 1848. Today, it remains as one of the most recognised and trusted financial product providers in the UK.
They offer an array of current accounts, savings accounts and financing options. Among their products are the Nationwide debt consolidation loans, which could help you out of debt.
Debt Consolidation, What’s It All About?
Debt consolidation is a technique used early to prevent debts from credit cards, store cards or personal loans getting out of control.
It works by taking out new credit and using this new credit to pay off multiple other debts. The new credit you take out should have more favourable repayment terms in relation to your circumstances compared to the previous debts you had.
One way of consolidating debts is through a loan. You take out a new loan to pay off other debts and then work on paying back the single loan you have. Debt consolidation is tricky business, and we always recommend learning more about it first.
What Is a Nationwide Debt Consolidation Loan?
Nationwide offer a personal loan that can be used for debt consolidation. Although the name of this product is not exactly a Nationwide debt consolidation loan, it is a personal loan that is used for this purpose.
Nationwide even state debt consolidation as one of the many uses of their personal loan product. You can learn more about the “Nationwide debt consolidation loan” below.
Nationwide Debt Consolidation Loan Reviews
At the time of writing, Nationwide Building Society has a poor Trustpilot review of just 1.7 out of 5. This is not uncommon for the big banks and building societies in the UK, simply because people tend to take out their frustrations online and rarely write positive reviews.
Nevertheless, here is what people have been saying recently:
“If you want to bank that isn’t trustworthy then this is the bank for you, but [you’re] warned as with the many other negative comments that are all very similar you join at your own peril.”
But not everyone has had a bad experience:
“Really had exceptional service for over 40 years. Perfect every time.”
Don’t give up on a Nationwide debt consolidation loan just yet…
Who Can Apply for a Nationwide Debt Consolidation Loan?
Nationwide debt consolidation loans are only available to Nationwide members. This means if you are not currently a Nationwide member you will have to become one to get a quote or to apply.
So, how do you become a Nationwide member? It sounds more exclusive than it is – and really just means an existing customer. You will automatically become a Nationwide member if you hold a Nationwide savings account, current account or a Nationwide mortgage. There is no fee to become a Nationwide member.
Eligibility for a Nationwide Personal Loan
Nationwide membership is just one criterion you need to meet to apply. You will also need to:
- Be between the age of 18 and 79
- Be a UK resident
- Have a minimum monthly income of £700
If you tick these boxes then you will be considered for their personal loan. However, acceptance will be determined by your credit rating and how much money you need to borrow to consolidate your debts. A poor credit file could stop you from being accepted for their debt consolidation loan.
Nationwide Debt Consolidation Loan Interest Rates
The Nationwide debt consolidation loan can provide credit from £1,000 to £25,000. And the advertised APR rate of 2.9% is only available for amounts between £7,500 to £15,000. However, if you are trying to consolidate debts of this amount, you may be better off using a debt solution like an Individual Voluntary Arrangement.
The 2.9% APR rate may sound favourable, but in reality, few people can access this low rate and may have to pay rates up to 24.9%. This is the maximum rate you can be charged.
Nationwide Personal Loan Repayment Periods
Unlike the Santander debt consolidation loan, which has a maximum repayment period of five years, Nationwide’s personal loans can be repaid for up to seven years, which may help some debtors. You can also get a Nationwide loan for as short as one year and make an early repayment to clear the loan if desired.
Nationwide Debt Consolidation Loan Calculator
If you are a Nationwide member already, you can get a quote for your planned debt consolidation on their website. And anyone can also use the Nationwide personal loans calculator to see what type of loan terms you can access. However, these calculators are not always accurate as they do not consider any personal circumstances.
Use them as a guide but don’t hang your hat on the calculation given.
How Do I Apply for a Nationwide Loan?
These loans can be applied for online. Because you must already be a Nationwide customer, they already have most of your details and will be able to process the application quickly. Most applicants receive a decision instantly.
The loan will be paid into your Nationwide account within two hours or an external account in up to three working days.
Money Nerd’s Thoughts on Nationwide Debt Consolidation Loans
Nationwide’s debt consolidation loan is very much like the personal loan offered by other big names. The terms are similar but Nationwide do offer a long repayment period up to seven years. Yet, most people won’t want to open a Nationwide account just to get a quote and apply.
Before you commit to a debt consolidation loan, shop around and speak with a. debt charity for further guidance!