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Debt Consolidation Loans
Combine multiple debts into one manageable monthly payment. Compare secured and unsecured debt consolidation loans from a wide range of UK lenders, with guidance on which option suits your credit profile.
There's no single 'best' debt consolidation loan for everyone in the UK - the right choice depends on how much you owe, your credit profile, and whether you're willing to secure the loan against your home. In general, the main options are:
A debt consolidation loan is generally worth considering when it replaces several higher-cost debts, such as credit cards and store cards, with a single loan that has a lower overall cost and a monthly payment you can comfortably afford. Speak to an advisor to compare a wide range of lenders and find out which type of loan suits your circumstances.
A debt consolidation loan combines several existing debts, such as credit cards, store cards, and personal loans, into a single new loan. Instead of juggling multiple monthly payments to different lenders, you make one regular payment on the new loan until it's repaid.
The aim of the best debt consolidation loans UK lenders offer is to simplify your finances and, where the new loan's overall cost is lower than your combined existing debts, reduce how much interest you pay over time. It doesn't erase the debt itself - you're still repaying what you originally borrowed, just restructured into one facility.
Debt consolidation loans come in two main forms. An unsecured loan isn't tied to any asset, so approval depends mainly on your credit history and income. A secured loan is tied to your property, typically allowing you to borrow more but putting your home at risk if you fall behind on repayments. If you're considering securing the loan against your property, it's worth comparing dedicated secured homeowner loans alongside general debt consolidation options.
Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.
Compare your options
Speak to an advisor about your circumstances. We compare a wide range of lenders and explain the trade-offs before you apply.
The best debt consolidation loans UK lenders offer aren't fixed products with a single headline rate. Lenders price each loan individually, based on the amount you want to borrow, your credit history, income, and whether the loan is secured or unsecured. Most lenders publish a representative APR, which is the rate offered to at least half of successful applicants - your own rate may be higher or lower depending on your circumstances, so speak to an advisor for figures relevant to you.
Loan amounts for debt consolidation typically range from around £1,000 up to £50,000 or more for secured borrowing, with the amount you're offered shaped by your existing debt, equity (for secured loans), and affordability.
Rather than pointing you to a single headline rate, your advisor looks at several factors to find options that genuinely suit your situation:
Early repayment charges are one of the most overlooked costs in debt consolidation. If you're planning to clear existing credit cards or loans early to switch to a consolidation loan, check what it will cost to close each one - some lenders charge a fee that can eat into the savings you're trying to make.
A debt consolidation loan is generally worth considering when you're managing three or more debts, your combined monthly payments feel unmanageable, and you can qualify for a loan with a lower overall cost than your existing borrowing. It's less suitable if it simply extends your repayment term without reducing the total interest you pay, or if it doesn't address the spending patterns that led to the debt in the first place.
Imagine you owe £12,000 spread across three credit cards, each with its own minimum payment and interest rate. Combining that into a single debt consolidation loan replaces three payments with one fixed monthly amount, which can make budgeting easier. If the new loan's overall cost is lower than the combined cost of your existing cards, you could also reduce the total interest you pay over time - but this depends entirely on the rate and term you're offered, so speak to an advisor for a comparison based on your actual balances and rates.
Having a lower credit score doesn't rule out debt consolidation, though it narrows your options and can affect the cost of the loan you're offered. If mainstream lenders decline your application, it's worth exploring loans for bad credit more broadly, as some lenders focus specifically on this market.
Lenders price loans in tiers based on risk. A lower credit score generally means a higher rate, and some lenders offer an eligibility checker with a soft search first, so you can see an indication of what's available without it appearing on your credit file.
If you're struggling with debt rather than simply looking to restructure it, free and independent guidance is available from MoneyHelper and StepChange, and an advisor can point you towards this support if a loan isn't the right solution for your situation.
Bad credit options
Access expert advice with no pressure to proceed
Applying for a debt consolidation loan through a broker regulated by the Financial Conduct Authority means you get guidance on which lenders are likely to accept you, rather than applying blind and risking multiple hard searches. Here's what the process looks like.
How it works
Check your eligibility
We run a soft search that has no impact on your credit score, so you can see an indication of what might be available before committing to a full application.
Compare your options
Your advisor talks you through loans that match your circumstances, explaining the differences between secured and unsecured options and any fees involved.
Choose the loan that suits you
You decide which option to proceed with, with no pressure to accept an offer that doesn't feel right for your budget.
We submit your application
As a broker regulated by the Financial Conduct Authority, we handle the paperwork and liaise with the lender on your behalf, keeping you updated at each stage.
Receive your funds
Once the lender approves your application, funds are released so you can use them to pay off your existing debts directly.
A debt consolidation loan isn't the only way to deal with multiple debts. Depending on your circumstances, one of these alternatives might suit you better.
Homeowners with sufficient equity sometimes restructure their existing mortgage instead, known as a remortgage to consolidate debt. Lenders sometimes describe this type of borrowing as a debt consolidation mortgage. This can secure a lower rate than unsecured borrowing, but it puts your home at risk and usually extends your overall mortgage term, so it's worth comparing carefully against taking out a standalone consolidation loan.
Other options
If you're struggling with debt rather than just looking to restructure it, independent and free guidance is available.
Free, impartial money guidance backed by government. Call 0800 138 7777.
A free debt charity offering advice and debt management plans.
Free, independent advice on debt and financial difficulty.
Check whether a firm or individual is authorised to arrange credit or give financial advice.
Common questions
Applying can cause a small, temporary dip in your score because most lenders carry out a hard credit search. Over time, making regular repayments and reducing the number of debts you're managing can help your score recover and improve, provided you keep up payments.
Yes, though your options are narrower. Specialist lenders, guarantor loans, and secured loans (if you own a property with equity) are the most common routes for borrowers with a lower credit score, though eligibility and terms vary by lender.
Most unsecured debts can be consolidated, including credit cards, store cards, personal loans, overdrafts, and buy-now-pay-later balances. Speak to an advisor to check whether your specific mix of debts is suitable for consolidation.
Some lenders charge an early repayment fee if you clear a debt before the end of its term, and your existing credit agreements may also carry exit charges. These costs can reduce the savings from consolidating, so it's worth checking them before you switch.
An initial eligibility check can be completed in minutes, but full approval and funding takes longer once affordability and documentation checks are complete. Secured loans generally take longer than unsecured loans due to legal and valuation checks, so speak to an advisor for a realistic estimate.
What our clients say
Shortly after I spoke with Anna, she was also very helpful and made it effortless and a nice experience.
Had a really good experience regarding arranging a secured loan. They introduced me to a great advisor. Thanks for the help.
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Thrilled to share my exceptional experience with Money Saving Advisors. The website made it incredibly simple and easy to connect with an advisor. They helped me find the best deal on my remortgage and secured a very competitive interest rate!
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I have previously declined a loan of the value I needed from various brokers, but this website found me a reputable broker with surprisingly decent rates.
Debt Consolidation
Speak to our advisors about consolidating your debts. We compare a wide range of lenders to find the right solution.
