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Debt consolidation loans

Find the debt consolidation loan that’s right for you

  • We’ve partnered with Monevo to offer their best deals on loans

  • Compare quotes from a wide range of trusted providers

  • Apply today and borrow between £1,000 and £50,000

We've partnered with Monevo to offer their best deals on loans. Monevo is a credit broker not a lender.

What is a debt consolidation loan?

A debt consolidation loan lets you combine multiple debts into a single payment. If you’ve got some ongoing loan payments, like credit cards, overdrafts or other loans, a debt consolidation loan could be a good option for you.

With a debt consolidation loan, you'll have just one payment to make each month as you repay the lender – at one single interest rate. Rather than having lots of payments at different and sometimes higher interest rates.

How does a debt consolidation loan work?

  • Work out how much you need to settle your existing loans (including any fees)
  • Apply for a loan for this amount
  • Use the new loan to repay your existing loan payments
  • Make monthly payments against the new loan with one interest rate

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What are the different types of debt consolidation loans?

There are two types of debt consolidation loans, a secured loan and an unsecured loan.

Secured debt consolidation loans need you to secure an asset against the loan, like your home or car. This acts as collateral against the money you've borrowed and improves your chance of being accepted.

But if you fail to meet your repayments, your home or car could be repossessed. So, make sure you weigh up the risks before applying.

Unsecured debt consolidation loans don’t need assets against the money you've borrowed. This means the interest rates might be higher. But it could be the right option if you don't want to secure your assets against the loan.

What can a debt consolidation loan be used for?

A debt consolidation loan can be used to help pay off a number of different types of debts, including:

  • Personal loans
  • Credit cards
  • Payday loans
  • Medical bills
  • Overdrafts
  • Store cards

Once you’ve entered your details, you can compare debt consolidation loans from various lenders to find the one that suits you best.

What are the pros and cons of a debt consolidation loan?


  • Reduced monthly payments by putting your multiple debts that are all accruing interest into one place. A single debt consolidation loan could have a lower interest rate, saving you some cash.
  • Longer repayment period because you could spread the debt over a longer period. This could bring down the amount you pay each month.
  • Improve your credit score by taking control of your loan repayments and making regular payments on time.
  • Pay with ease as one payment is a lot easier to manage than several.


  • Missing payments on a debt consolidation loan could negatively affect your credit score. This makes it harder to get credit or take out a loan in the future.
  • Additional fees are needed to set up the loan. These can be incurred while settling existing loans or transferring the balance of your loans from your existing creditors.
  • Loss of assets if you can’t keep up with secured loan payments. You risk losing the asset you used to secure the loan, like a car or home.

Is a debt consolidation loan right for you?

You don't want to be left worse off with a debt consolidation loan, so think carefully before applying.

If the loan amount won't cover all of your current debt repayments including any fees for settling loans early, or if you've nearly paid off your current debts, you could look at other options.

You could also look elsewhere if the fees to take out a new loan are greater than the benefits of taking out a new loan.

Another option to look at is a balance transfer credit card.

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How do I get a debt consolidation loan?

If you’re not sure if a debt consolidation loan is right for you, it’s worth contacting a debt advisory company for a second opinion. They’ll be able to offer professional guidance. They might recommend a debt consolidation loan or suggest some alternatives.

Want to go forward with a debt consolidation loan? Great! Just make sure you’re getting the best deal by working out exactly how much your debts are in total. Including the outstanding interest and any fees.

When you’re ready to compare loans, we'll need some details from you, including:

  • The amount you want to borrow
  • How long you’ll be paying back the loan for
  • Your UK address and any previous addresses from the last 4 years
  • Your monthly income and outgoings

Once you’ve entered this information, you can compare quotes from various lenders to find the one that suits you best.

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Tell us your monthly budget or how much you’re looking to borrow and over how long, and we’ll show you an example of what your repayments could be.

Why use Confused.com and Monevo for loans for bad credit?

We’ve teamed up with the personal loans experts Monevo to offer their best deals on loans. Monevo's service offers:

A free service with no obligation to apply once you’ve got your rate. Eligibility checks with no impact on your credit score - lending partners run a soft search on your credit file which doesn’t affect your score.

Before applying for a secured loan, think carefully about securing debts against your home. Your home may be repossessed if you don’t keep up repayments on a mortgage or any other debt secured on it.

If you’re thinking of consolidating existing borrowing, know that you may be extending the terms of the debt and increasing the total amount you repay.

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Need more help?

Does a debt consolidation loan hurt my credit score?

Your credit score will only be harmed if you can’t make your payments. When comparing debt consolidation quotes, we only run a soft credit check. This doesn’t affect your credit score. A hard credit check is only made when you apply for the loan. Picking a debt consolidation loan that suits your financial situation can help improve your score as you’re paying it all back on time.

Do I have to get a debt consolidation loan to cover all my debts?

No, if you have a particularly good rate on one of your loans, you may not want to switch it to a debt consolidation loan.

How much does a debt consolidation loan cost?

Like with all loans, how much you pay will depend on the interest rate you’re given and the total cost of the APR. These will vary depending on the amount you’re borrowing, the length of the debt consolidation loan term and your financial situation. Your credit score also affects the cost. If your score is low, loan companies tend to charge higher interest rates.

We’ve got some helpful tips on how you could improve your credit score if yours isn’t looking too great. If you have a poor credit history, getting approved for a loan can be difficult, but there are options available to you. Some lenders can offer loans to people with bad credit, but at a higher interest rate. Find out more about bad credit loans.

How much do I need to borrow?

You should borrow enough to cover your debts after working out how much you owe in total. This includes any additional fees and the overall interest. Additional fees can include things like early repayment charges. Your current lenders should be able to give you details on these.

Borrowing more than you need only increases how much you have to pay back, as well as the debt you’re trying to get out of.

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