Loans

Debt consolidation loans

Find the debt consolidation loan that’s right for you

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  • Check eligibility without affecting your credit score

What is a debt consolidation loan?

Debt consolidation is where you combine several smaller debts into one larger one.

With a debt consolidation loan, you borrow the total amount your debts come to, and use the loan to pay them off. You then pay off the loan in monthly instalments.

There are a few benefits to this:

  • It’s easier to manage, as you’ll only have one payment to make each month, rather than several.

  • It can be cheaper if you’re paying high interest on several small debts. This isn’t always the case though, so make sure you know what you’re paying before you jump in.

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How does a debt consolidation loan work?

Add up your debts

Add up your existing debts and see how much you owe in total.

Choose a lender

Compare quotes for this amount, and then choose a lender to go with.

Pay off your loan

Use the loan money to pay off your other debts, and then repay the loan.

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Is a debt consolidation loan right for me?

If you have debt spread over several accounts, then a debt consolidation loan could work for you.

But they do come with drawbacks, so it’s important to consider the pros and cons before taking one out.

To help you decide, here are some things to think about:

The pros and cons of a debt consolidation

Pros

They can be cheaper: In some cases, the interest on your loan may be less than what you’re paying on your existing debt. This isn’t always the case though, so double check before applying.
They can improve your credit score: having one larger debt, instead of several, can have a positive affect on your credit score. Consistently meeting the monthly repayments of your loan can have an even bigger impact, as it shows that you’re a responsible borrower.
They can be easier to manage: dealing with debt spread over several credit cards can be confusing. Consolidating them into one monthly payment can help simplify your finances.

Cons

They can be more expensive: While they can sometimes save you money, they don’t work for everyone, and you may end up paying more in interest on a loan than you do on your existing debts.
Your term may be long: If you have a poor credit rating you may only be offered loans with long terms. These often come with attractively low monthly repayments, but the interest you’ll pay on them can add up over the years, making them more expensive than other borrowing options.
There may be unexpected fees: If you’re using your loan to cover other debts, you may have to pay exit fees or other charges to end those debts early. Make sure to factor these into your plans.

Loan calculator

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.

Get started

What debts can I cover with my loan?

A debt consolidation loan can be used to help pay off almost any debt.

They’re commonly taken out to cover:

  • Credit cards

  • Payday loans

  • Overdrafts

  • Store cards

  • Personal loans

  • Car finance

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You might also be interested in:

Loans for bad credit

can be suited to those with a history of bad credit

Bad credit loans

Personal loans

allow you to borrow a lump sum in one go

Personal loans

Car finance

can be an affordable way to spread the cost of buying your next car.

Car finance

Will comparing loans affect my credit score?

No, comparing loans with us won't hurt your credit score.

When you get a quote, our partner Experian will check your credit information via what’s known as a ‘soft credit check’.

Soft credit checks don't affect your credit score and won’t show up on your credit report.

By allowing Experian to do this, you’ll be able to see exactly what loans you’re eligible for, without affecting your score.

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What else do I need to know before comparing loans?

APR

When you compare loans, you’ll see a figure next to the prices you’re quoted. This is known as an annual percentage rate, or APR. It’s the amount you’ll pay in interest and charges each year on top of the amount you’re borrowing. It’s given as a percentage. A 10% APR means you’ll pay 10% of your remaining loan amount, plus interest and fees, in charges each year.

Applications include hard credit checks

Comparing quotes won't affect your credit score, but applying for a loan might. Once you've picked one of the deals we've found for you, you'll be directed to your lender's site to finish applying. During this process, they'll perform a hard credit check on you. These appear on your credit report and can affect your score, so keep this in mind.

Term can impact interest

This is the length of time you’re borrowing for. It can affect how much you pay in interest, so it’s crucial you consider it. For example, while an APR of 10% over 5 years might sound better than 15% over 2 years, it’s likely you’d end up paying more in interest over the course of the 5 year loan than you would during the 2 year one.

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Page last reviewed: 20/07/2026

Reviewed by: Nicola Morgan