What’s a debt consolidation loan?
A debt consolidation loan combines all your existing debts into a single payment. It's an unsecured personal loan that makes managing your debts easier.
How does it work?
You borrow money equivalent to the amount of debt you owe. For example, if you owe £4,000 on a credit card, £2,000 on a car loan and £500 on a store card, you can apply for a debt consolidation loan of £6,500 and pay them off in one go. This means you’ll be able to make a single payment each month and manage it in one place.
Representative example
The rate we offer depends on individual circumstances. The interest rate will vary too depending on financial circumstances and the loan amount. All loans are subject to status, and debt consolidation is no different.
Representative Example: Borrowing £10,000 over 60 months with monthly repayments of £241.68. The total amount repayable will be £14,500.80. Representative 16.9% APR, annual interest rate (fixed) 15.72%.
How to know if a debt consolidation loan is right for you
Check if you're eligible
You'll be able to see what rate you can get which will determine whether this is the most cost-efficient way of paying off your debts.
Make a budget
Try budgeting and managing your money before getting a loan. Free resources like MoneyHelper are good places to start.
Check any early repayment fees on your loans
It's worth factoring this into your decision as the cost of paying it off may outweigh the benefits of consolidating with a new loan.
Explore all of your options
Carefully consider which option is right for you. It could be a loan, a 0% balance transfer card or keeping your finances as they are.
Read the below link to see what will work for you.
Payment support Get a quote today
