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Many people that are looking to consolidate their debts find it difficult to find a company that is willing to take them on. If someone has faced difficulties, defaulting on multiple payday loans or perhaps picking up a CCJ then there aren’t many companies that would take the risk on. The type of lenders most likely to accept will be uncovered below. The idea behind debt consolidation loans for bad credit scores is of course to wipe out existing debts and create one single manageable repayment. This requires an adequate level of cash (often a few thousand) and a long repayment period to break down the payments (ideally a few years).

12 month loan lenders are growing in popularity, although the amounts and terms granted here may not quite match up. Further to this, these companies may not be willing to take the risk on. The best solution in our scenario would be to apply for a guarantor or logbook loan. Both of these products can hand you cash in the thousands and the repayments are stretched out, particularly with guarantor loans up to 5 years. For this, you must be able to find someone who can support your application. If you can though then most lenders in this sector will take you on so long as you aren’t bankrupt or on an IVA.

If no backer can be found, then heading on to the logbook option would be recommended. Many logbook lenders offer No Credit Check debt consolidation loans for bad credit. No search needs to be ran and having CCJs, defaults etc isn’t a real issue since they have the V5 protection in place and so if you don’t pay, they take your car away. You of course need a qualifying car to make the grade. This would also be a much more expensive way to consolidate that is why the guarantor choice stands out as the ideal solution. The added advantage is that they do offer the very cheapest subprime rates around today.

Finding a guarantor is often the main obstacle, especially a homeowner. However, UK Credit allows the backer to be a tenant, so long as they have a good score and qualify under the required age. A friend in this instance could be suited to support the application. These guarantor and logbook recommendations are the most likely product types to accept poor credit. The high cash sums and terms are ideal and the costs are competitive due to the security. If debts have truly spiralled then it may be a better idea to consider a free debt management plan. PayPlan and StepChange are the most popular free DMP providers.