Debt Consolidation Loans FAQ

Having been direct lenders of loans and lending options for several years now, we know all too well how frustrating, and often, overwhelming it can be to have several debts going out of your bank account each month. That’s why at Progressive Money, we offer a selection of loans, offering lending options to those who may have been turned down by other lenders.

If you’re looking to turn all of those debt repayments into one simple payment, a debt consolidation loan from Progressive Money could be perfect for you. We pride ourselves on our ability to examine and assess each applicant for a debt consolidation loan on their individual circumstances because we know that someone’s situation can often be more than just what appears on our computer screen.

If you’re looking for further information on these particular loans and haven’t been able to find an answer on our debt consolidation loans page, then you may find the answer you’re looking for here on our debt consolidation FAQs page.

Are debt consolidation loans a good idea?

As with all kinds of loans, whether or not a debt consolidation loan is a good choice for you depends mostly on your current circumstances. If you’re looking for a regular loan with which to finance home improvements or the purchase of luxury items such as a new vehicle or a wedding, then a debt consolidation loan might not be the best option. We have a wide range of loans available on Progressive Money, be sure to browse our range to find the most suitable lending option for you.

On the other hand, if you’re looking to simplify and consolidate your debt repayments into one easy-to-manage repayment, then there’s a good possibility that this is the right kind of loan for you. A debt consolidation loan is often a suitable solution for those who feel their debt obligations are hard to keep track of or those who would prefer to pay out less money each month.

Can I consolidate debt with poor credit?

With Progressive Money, there’s a chance you’ll be accepted for a debt consolidation loan even if you have a poor credit history if you meet our short list of criteria mentioned below.

As a direct lender of debt consolidation loans, we are able to be more flexible in terms of who we are able to lend to, including those who have a bad credit score, and those who may have been turned down by other lenders. It’s also worth noting that during our debt consolidation loan eligibility checks, we only run ‘soft searches’, meaning our credit checks won’t leave a footprint on your credit history and affect your chances of being accepted for credit again in the future.

What is a soft search?

A soft search (also known as a ‘quotation search’) is a credit check search leaves only a soft footprint on a person’s credit file, as opposed to a ‘hard footprint’ which is usually left following a full credit application.

These soft checks won’t affect your credit score, giving you the ability to shop around and receive several quotes, providing other lenders conduct a ‘soft search’ as we do. Conducting these soft searches allow us to make a credit decision for you following your application without leaving a footprint or impact on your credit rating.

While we do conduct a ‘hard search’ during the process, this is only done once you choose to proceed and your loan has been approved and the funds are ready to be transferred to you. This will affect your credit file, simply as a record to other lenders that you have made a full credit application with us.

How do debt consolidation loans work?

A debt consolidation loan is simple and straightforward, and our approach as a responsible direct lender allows us to ensure we consolidate your debts with other lenders on your behalf, taking even more weight off your shoulders.

Rather than paying loan amount directly to you, at Progressive Money we deal with the lenders directly, clearing the outstanding balances and allowing you to move forward making one simple monthly repayment to us. Often our repayments can be less than the total monthly repayments of your previous outstanding debts too, by allowing you a longer term in which to repay our debt consolidation loan.

We need to make you aware that if you are looking to consolidate other debts through the loan with us, whilst the monthly repayments may be lower you may be paying a higher rate of interest and extending the term of your loan which would mean that you pay back more in the longer term.

How do I consolidate any existing finance?

If you are consolidating any existing finance you will need to supply us with your creditor account details and full settlement amounts for each creditor you want to consolidate. As a responsible lender, at the point we release the funds, we will make direct payments to your creditors or we may send cheques to you to pay off your loan.

Please note that we do not do partial consolidations, and any debts you wish to consolidate must be settled in full.

I have been declined for credit in the past, can I apply?

Yes, you can! We can often provide loans for those who may have been declined credit in the past, meaning we may be able to consolidate your debts with a loan.. We take the time to fully understand your current situation, as we know personal circumstances aren’t as simple as what appears on our computer screens during our checks.

Are there fees included with a debt consolidation loan?

There are no upfront fees with a debt consolidation loan from Progressive Money, and you won’t be charged to make an application.

If your application for a debt consolidation loan is successful and you wish to move forward with the loan, there will be two fees applied. The first fee is a £390 administration fee which is for the setup and administration of your loan. The second fee is an acceptance fee of 10% of the loan value.

Both fees can either be included in the loan which means that you include the repayment of these across your monthly payments. This will result in borrowing more, therefore increasing the amount of interest paid and the total amount repayable. Or, you can pay the fees as part of your first payment. In this case, please note that your first payment may be considerably higher than your reoccurring payments.

How long will it take to get my funds?

Once you have successfully completed an online application for a debt consolidation loan and passed all our online checks, we then need to do some final checks using your bank statements and providing we don’t require any further information we aim to release the money within 72 hours, however, we cannot guarantee this.

Can I make overpayments to my loan?

Yes, you can. If you make overpayments, the overpayment goes straight to the principal loan amount which will reduce the overall term of the loan. Your contractual repayment will stay the same until the loan is paid off.

Please note that if you are in arrears, any overpayments will be used to bring your loan account back up to date.

For further information about our debt consolidation loans (or any other lending options), you can call our loan advisors team today on 0161 814 9383.