What is a debt settlement loan?

A debt settlement loan is a type of personal loan designed to help you pay off existing debts. You won't need to contact individual creditors yourself - your loan will be used to settle selected debts on your behalf, with the entire process handled for you, making things simpler and more manageable.

How does it work?

Once your loan passes our checks:

1. You'll be shown a list of your debts and asked to select which ones you'd like to settle using your loan.
2. Our trusted third party partner, Paylink, will contact your creditors to confirm the settlement balances of the debts you selected.
3. Paylink will use your loan to pay off those creditors.
4. If there's any money remaining after your debts are settled, it will be transferred to your account.

This process ensures your loan is used exactly as intended, to help you clear your debts securely and efficiently.

Do I need to contact my creditors myself?

No. Paylink handles that for you. Once you've selected the debts you want to settle, they'll reach out to your creditors, confirm the balances, and settle your debts, saving you time and hassle.

Is this a purpose-specific loan?

Yes. This loan is designed to help you pay off your debts. As part of your loan agreement, you agree to use at least 50% of the loan amount to settle the debts you choose during your application. This ensures your loan is used as intended – to help you clear your debts effectively and responsibly.

Will this affect my credit score?

A debt settlement loan is like any other loan. Once your loan is approved and you have e-signed your loan agreement, we will carry out a hard credit search. This will impact your credit score.

It is important to continue making any monthly payments due on the debts you have selected. Only stop payments once your creditors confirm the accounts are paid off and closed. Missing payments can negatively affect your credit score.

What happens after I select the debts I want to settle?

Once you have completed the debt settlement stage of your loan application, Paylink will contact your creditors to confirm the settlement balances. This process may take up to three working days. We will keep you updated.

Once the balances are confirmed, we’ll send you your loan agreement to e-sign. After you e-sign, and the loan funds will be disbursed directly to Paylink to settle your chosen debts.

What if a creditor doesn’t accept payment?

If a creditor cannot accept payment due to missing or incorrect details, Paylink will try to contact you. They will call you from 0800 952 0427. If they are unable to reach you, the funds may be paid to you.

What if I have any queries about my debt settlement loan?

If you have a query about your debt settlement loan you can contact Paylink directly at: refi-support@experian.com or call: 08009520427. They are open Monday-Friday 9am-5pm.

You can also contact Plata, who is responsible for the payment of your loan to you and your existing creditors.

Can I cancel my Direct Debits once payments are made?

Please do not cancel any Direct Debits, standing orders, or payment instructions until your creditors confirm that payments have been received and applied to your accounts. Waiting for confirmation helps prevent missed payments to your existing debt accounts.