An unsecured personal loan is the most common type of loan applied for in the UK currently and is widely available from a number of lenders and loan companies, from high street banks and building societies to internet lenders and specialist unsecured personal loan companies.
They are usually available for relatively small amounts of money of up to a maximum of £25,000 over a reasonably short term, usually a maximum of up to 7 years. Although unsecured personal loans are often used for major purchases, unsecured consolidation loans are widely used to combine a person's various loan and credit card debts into one monthly payment and reduce their monthly outgoings.
An unsecured debt consolidation loan should be used with care, as the overall cost of the unsecured consolidation loan may end up being more than the original loan debts, depending on the amount and remaining term of the original unsecured personal loan.
