Debt Consolidation Loans
Take control and change your finances for the better
Representative 49.9% APR (variable)
Representative Example: Borrowing £4000 over 36 months, repaying £195.16 per month, total repayable £7025.76. Interest rate 49.9% (variable). Subject to status.
All your debts in one tidy, affordable payment. With a guarantor loan, you could straighten out your finances and make life simple.
Why choose Amigo Loans for debt consolidation?
Settle old debts
One affordable monthly payment
Trusted lender
What are debt consolidation loans?
Debt consolidation loans are a way of taking control, settling your debts, and getting your finances back on track. One repayment, once a month, that covers everything you owe.
Sound straight-forward? That's the goal. The funds from a debt consolidation loan could be used to settle all your other debts, from car finance, credit cards, loans, store credit or pay monthly deals. That leaves you with just one, easy-to-manage monthly commitment that's been tailored to work best for you.
Our debt consolidation guarantor loans range from £2,000 - £10,000 and can be repaid over 1 to 5 years, with a representative variable APR of 49.9%. Pick and choose the payments that are right for your circumstances, and we'll make sure it's affordable before going ahead.
Should I take out a debt consolidation loan?
There are three steps to considering if a debt consolidation loan is right for you:
1
Think about how much you owe towards your debts already.
2
Consider how much you're currently paying towards these debts altogether on a monthly basis.
3
Have a look at our loan options. You'll need to borrow enough to make sure you can settle all your debts, while choosing a repayment that will reduce your monthly outgoings.
When considering an Amigo loan for debt consolidation, ask yourself if consolidating your debt will lower your overall interest rate, the total you need to repay, and your monthly payments. Remember that, although your monthly repayments may reduce, the total interest you have to repay may increase. Consolidating your debts can be a great way to save money, and it's much easier to keep track of your payments as they're all going to one place. It just takes some quick calculations to see if that's your best option.
Will I get approved for a debt consolidation loan?
If we’re confident the loan is right for you, you’re not in any financial difficulty, and you’re not bankrupt or on an IVA (or similar), then we should be able to help you with the debt consolidation loan you need. So if you’re worried you don’t have the best credit score, don’t be, we’re more concerned about your current situation.
You'll also need a guarantor. That's someone who trusts you to keep up the repayments and who agrees to cover them if you don't. By basing our loans on trust, this means we can accept customers that many other lenders wouldn't. And just to put your mind at ease, finding someone to be a guarantor on your Amigo loan is actually pretty easy. They just need to meet these criteria:
Aged 23-75
UK homeowner or have good credit
Happy to pay if you don't
We always recommend asking a homeowner to be your guarantor first. A guarantor doesn't need to own their home but it will make them more likely to be accepted if they do. They'll also need a good credit score and be able to comfortably afford the loan, just in case you don't keep up with the repayments (but don't worry, we'll always try to avoid this).
Can I get a debt consolidation loan with bad credit?
We’re here to give you a chance for a better future, so if you don’t have the best credit score we could still help. What we believe in is trust. If you’re not in financial difficulty, can comfortably afford the repayments, and your guarantor agrees to back your loan, then we can back you too.
On that subject, a guarantor loan for debt consolidation could actually build your credit score. If you maintain the payments on time and keep on top of your other financial commitments, you could see your credit score improve. We haven't won the Best Credit Builder award from MoneyNet for 6 years running for nothing - and speaking of which...
Award winning for a reason
We're the proud winners of several other awards too:
taking control
They helped me to consolidate all my debts to one monthly payment. I'm so happy, thank you!
Using a loan to consolidate credit card debt
Guarantor loans also work for consolidating credit card debt. You could use the funds from an unsecured loan with Amigo to pay off your credit cards, leaving you with one monthly payment towards us. Make sure this is in your best interests by checking whether this will reduce the total cost or the APR.
And just to add, unlike credit cards, the minimum payment never changes. You choose the monthly payments to suit your circumstances before the loan is paid out, and we'll make sure it's affordable before it goes ahead.
With Amigo Loans, no matter what type of debt you're hoping to consolidate, you're in safe hands.
Have questions?
We've got the answers.
