Debt Consolidation Lenders
It can be a daunting process looking for any sort of financial service like a loan or credit as there are a lot of companies to choose from and finding the right one for you can be difficult. If you know your credit rating this can help you narrow down your options when looking for a loan or debt consolidation as some lenders will simply not loan to people with bad credit ratings.
If your credit rating is good you may want to consider going to a high-street lender. These are the major players in the lending sector and service a large proportion population with loans and other financial services. These are often institutions and organisation like banks and building societies and most of them will have high-street branches hence the name "high-street lenders". They often have an online presence in addition physical presence but most of their dealings is through the retail outlets them selves. High-street lenders are also some of the most responsible lenders in the market and do not target credit impaired borrowers. They will have a range of interest rates depending on how much you want to borrow, if your loan is secured or unsecured and how long you wish to borrow for; but in general high-street lenders have lower interest rates than other types of lenders.
If you have a bad credit record and you can't get consolidation with a high-street lender then you may have to look else where. There are still plenty of places to look but you will have to be more careful and watch out for unnecessary fees when applying for your loan. There are a whole bunch of companies set up to target what is known in the industry as "sub prime" or "credit impaired"borrowers, they can help you get out of debt but you will be making repayments for a longer period of time as interest rates are higher. These kind of lenders also tend to favour secured loans, so you will more than likely have to secure you home against the loan too.
Another way to look for consolidation is to go through a Broker. Brokers are companies that search other companies for you to get you the best deal. Some Brokers have ties with lenders and creditors and tend to favour those companies more so this can lead to a biased opinion on what really is the best deal. Some brokers ask for an up front fee where as others get paid commissions from the lenders them selves. Generally if you are having difficulty getting a loan a broker may be able to help you, large brokers have ties with hundreds of loan companies of all descriptions so they may or may not be able to find you the best deal so as always it is still wise to shop around.
Beware of loan consolidation services that claim to be able to help you consolidate your debts without a loan. These companies often charge heavy fees on top of your repayments to service their own needs. They will work on a practice known as informal debt consolidation, this involves them contacting your creditors and arranging a new more affordable repayment scheme. This is an unregulated practice that is not generally advised by the financial community. You can write to your creditors your self and explain your situation and arrange a more beneficial payment schedule and this will not incur you any hefty fees. Also there are some horror stories of companies taking funds from customers without their creditors even agreeing to any informal agreement and the borrower still being held accountable for the loan leaving them with an even worse problem. If you do step into this field it is advisable show caution.
