Debt Consolidation
Simplify your debts into one payment.
Replace several existing debts with one new loan and a single monthly repayment.
Is it right for you?
Debt consolidation may suit you if…
- You can still get credit at a fair rate
- You’re up to date with payments
- You want one simpler payment
- The new rate is lower than existing debts
It may not be suitable for
- People already missing payments
- Anyone at risk of borrowing again on cleared cards
Don’t worry — there are other options, and our check will point you in the right direction.
Real-life example
How debt consolidation could help.
James, 29, Nottingham
James had three cards with high interest but was still keeping up.
A consolidation loan simplified James’s payments, though the total cost depends on the term.
Total debt
Monthly payments
Accounts
Illustrative example only. Names and figures are representative; your outcome depends on your circumstances.
How it works
How debt consolidation works.
Compare costs
Check the total cost against what you pay now.
Take out a loan
Use it to repay existing debts in full.
Repay monthly
Make one fixed repayment until the loan is cleared.
The full picture
Advantages and disadvantages.
Advantages
- One simpler payment
- Could lower the interest rate
- Fixed end date
- No insolvency record
Things to consider
- Can cost more over a longer term
- Secured loans risk your home
- Needs a decent credit score
- Doesn’t reduce what you owe
Could debt consolidation work for you?
Five quick questions. No credit search. No obligation.
Safe, secure, confidential
Consolidation FAQs
Common questions.
Will it hurt my credit score?
Applying creates a search, and a new account appears. Paying on time can help over time.
Should I secure a loan on my home?
Be very careful — your home may be repossessed if you don’t keep up repayments.
What if I’m refused?
Other options such as a DMP or IVA may be more suitable.
Compare options
Other debt solutions in England.
Not sure if debt consolidation is right for you?
Answer five quick questions and we’ll help you understand which options may suit you.
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