WARNING: Late repayment can cause you serious money problems. For help, go to moneyhelper.org.uk
  1. Home
  2. Guide
  3. Consolidation Loan

Consolidation Loan

Do you have existing loans that need to be paid off? Or do you need to pay your large credit card bill with high monthly repayments but have no money? This is where Pixie Loans can help you get a consolidation loan. This is an easy way to reduce your outgoings, look forward to more disposable income each month and gain better control of your finances.

What is a consolidation loan?

A consolidation loan is a new loan borrowed by a person to put all their existing credit commitments into one easily managed monthly payment loan. The amount may be used for paying overdue house rent, clear car instalments or even credit card bills that have piled up.

We at Pixie Loans help people find consolidation loans that can go up to £5,000. which allows you to clear, into one easy payment, past debts and help you to move forward towards a fresh start.

Before you take out a consolidation loan, make sure that it will fully clear your existing debts and will reduce your monthly outgoings, whilst not placing you in more debt. If you find that you are struggling with debt, a consolidation loan may not be the best approach but contact your creditors directly and let them know you are having problems.

What is an unsecured loan vs a consolidation loan?

A consolidation loan can either be an unsecured or secured loan. It depends on your financial circumstances and how much you need to borrow.

A secured loan, which can go up to £100,000 plus, is secured against an item such as your home, if a homeowner, or other valuable items. This security allows lenders to offer lower APR rates and larger amounts because if the repayments are not made, they can collect on the security.  An unsecured loan is the opposite, this type of loan is not secured on anything.  Lenders will not lend as much on an unsecured loan as there is no security if it’s not repaid.

Unsecured loans are often used as Consolidation Loans.

Why is it important?

This is so, if a borrower defaults, the lender can take possession of the security that in turn pays for the loan taken. Hence keeping the lending party safe from loss.

On the contrary, Pixie Loans has been helping people with no security on hand to opt for unsecured loans even with a bad credit rating. If you have had a bad credit score then that does not necessarily make you ineligible for a loan.

Rather, we can still help you in getting an unsecured loan when you have nothing to present as security to the lender.

Representative 546.1% APR. Representative example: £200 repaid over 3 monthly instalments of £134.76. Total charge for credit £404.27. Interest £204.27. Interest rate 546.1% (fixed)

Can you get a guarantor loan with a poor credit rating for a consolidation loan?

Yes, you could, with Pixie Loans’ help of course! To achieve better control of your finances, sometimes you need to borrow. And when you do not have access to the kind of money to help, you can go for a guarantor loan.  Present someone to the lender who will promise to pay your loan instalments if you fall behind. Then, even with a poor credit score, you could get your consolidation loan!

But what if you don’t have a guarantor? Will you become ineligible for a loan?

Of course not!

We at Pixie Loans will then help guide your way through an instalment loan. There you can borrow the amount you need to consolidate your debts in a single go. Then, you can pay it off in the form of instalments over the promised time to the lender.

The loan amount does not change in an instalment loan. But, yes, the borrower is bound to pay interest over the amount lent. The amount of interest on an instalment loan/unsecured loan is calculated based on the APR. It’s normally fixed for the term of the loan.

People who wish for a new financial start, can find getting the consolidation loan they need a challenge. At Pixie Loans, we are always up to help. Hence, clear your previous debts by using a consolidation loan borrowed through us and start fresh today!

How can you apply?

Pixie Loans ensures the instalment loan application process is made easier and safe for you to use. All you need to provide is basic contact details, employment, income and outgoings. 

We’ll run a quick check against the criteria of our lenders and where we find a match. Then, we pass your details to them for an acceptance confirmation.

Apply Today
FREE personalised quote Upto £5,000 cash loan Secure & encrypted
Apply Today
customer image
13,000+ customers empowered each month
request image
£11.1m+ requested each month
loan calculator image

Recent posts

Representative 546.1% APR. Representative example: £200 repaid over 3 monthly instalments of £134.76. Total charge for credit £404.27. Interest £204.27. Interest rate 546.1% (fixed). APR rates range from 45.3% APR to 1575% Max APR. Your APR rate will be based on your circumstances.

Pixieloans.co.uk is a trading style of Maxed Up Media Ltd. Company registered address: Maxed Up Media Ltd, Adamson House, Towers Business Park, Wilmslow Road, MANCHESTER, M20 2YY. (Company number 07162006). Maxed Up Media is an appointed representative of Serpable Ltd and regulated by the Financial Conduct Authority under reference 848096. (Serpable Ltd is authorised and regulated by the Financial Conduct Authority under reference number 799104)

*loans can be paid into your bank account in less than one hour if the lender that has offer you a loan provides this service. In some instances, it can take up to 5 working days for a loan to be in your bank account. The lender will inform you when to expect the funds into your bank account.

IF YOU ARE THINKING OF CONSOLIDATING EXISTING BORROWING YOU SHOULD BE AWARE THAT YOU MAY BE EXTENDING THE TERMS OF THE DEBT AND INCREASING THE TOTAL AMOUNT YOU REPAY.

Credit is available to 18 years and over. All loans are subject to status. A short-term, payday loan should be used for short-term financial needs only, not as a long-term financial solution. Never borrow an amount that cannot be repaid on your next pay period date. Missing repayments may have a negative effect on your credit rating and make it more difficult for you to obtain credit in the future.

The operator of this website is not a lender or short term loan provider and does not make loan or credit decisions. We are a credit broker, providing loan matching services and help connect consumers interested in obtaining short-term payday loans, installment loans, guarantor loans and secured loans in amounts between £100 and £5,000 with participating lenders or brokers in our network.

We do not charge you any fees to use our websites, services or products. Any commission received by us is paid by participating lenders or brokers if you choose one of their products or for referring you to them.

If you are matched with a participating lender or broker, you may be charged a fee directly by the participating lender or broker. Please be sure to read their terms and conditions before proceeding with any loan arrangement.

We work exclusively with a selected group of lenders and brokers to offer you a range of credit and loan products. We may receive a percentage of the loan amount as a commission from a loan provider or broker if you take out one of their products and/or we may receive a fee for introducing you to them.

You can request details of these commissions or fees, by emailing us. We will then provide you with the precise amount of the commission or fee or, where that amount is not known, the likely amount. Please note that the lender or broker we direct you to may not offer the cheapest loan that is available to meet your needs.

© PixieLoans. All rights reserved

We value your privacy

We use cookies to ensure you get the best browsing experience and service from us, as well as for marketing, analytics, and personalised advertising. By clicking "Accept all and continue", you consent to our use of cookies. If you want to know more, you can read our cookie policy.