Put simply, debt consolidation involves paying off your existing debts with one single loan, leaving you with one monthly repayment. Our Personal Loan could help.
Before you apply, make sure that you’ve done your homework.
For example, try adding together the monthly repayments for all your existing debts, and comparing this to a new borrowing quote based on the total amount it would cost to pay off these debts. This could give you an idea whether you can save money, although it’s worth finding out whether paying off any of your existing debts incurs any charges or early settlement adjustment.CloseEarly settlement adjustmentYou can fully or partly repay your loan at any time during the repayment period. If you choose to settle your loan before it’s completed its full term some of our loans may charge an early settlement adjustment. If you have taken out a Flexible Loan you agree to repay the capital plus the interest as it accrues. If you pay off your loan in full before the end of the agreed term, we'll calculate what you owe us at the time which will include capital plus interest accrued but no additional charge. If you’ve taken out any of our other loans, the amount you agree to repay includes interest that is charged to the end of the loan term. If you make an early settlement we'll reduce the charge for credit you have agreed to pay us which means you wouldn’t have to pay all of the interest. This reduction may be adjusted by up to 58 days’ interest - this is the early settlement adjustment.
Keep in mind that if you choose to extend your repayments over a longer term, you may pay more interest overall, even if the monthly repayments are lower. Your new loan may also incur a higher interest rate than you are currently paying.
You may also want to reduce credit limits on, or close, any credit cards or overdrafts that you are paying off with your new loan. This may help you manage your total debt.
We'll never encourage you to borrow more than you can afford. To help you get it right, we have lots of help and guidance.
Your local branch will be happy to help you apply for a Loan. We'll usually be able to give you an answer and transfer the money into your account the same day.
We want to find a product that’s right for your circumstances, which is why we adhere to the Standards of Lending Practice, which are monitored and enforced by the Lending Standards Board.
To find out more you can read the statement of responsibilities, which details what’s expected of us, the lender and you the borrower.