Debt consolidation loans

A debt consolidation loan is a personal loan you use to repay all your debts in one go. You then pay the new loan off with one fixed repayment each month. This can help if you find it hard to keep on top of different repayments needing to be made at different times.

If we accept your application, we'll put the money into your bank account. You'll then need to use it to pay off each of your debts. This doesn't happen automatically and we can't do it for you.

You choose how long you take to repay the loan – from 1 to 7 years. And you can borrow between £1,000 and £50,000.

It's important to understand a debt consolidation loan doesn't remove your debt. It just replaces several smaller debts with one large one.

And you could end up paying more overall in interest. Use our loan calculator to see what your interest and total repayments could be and compare these to your current debts. A higher interest rate or longer term could mean you'll pay more over time.

Also, unlike a credit card, there is no minimum repayment for a personal loan. The monthly repayment amount is fixed and you need to pay it in full each month. Missing repayments can be bad for your credit score.

Before you apply, work out how much you owe. That way you shouldn't borrow more than you need or not enough. For example, look at your credit card, loan and overdraft debts. Include any interest and fees. If you already have a loan, there might be an early repayment charge to pay it off in full.

Once you know the size of your debts, you can look for the right loan for you. Our loan calculator can give you an idea of the interest rate and monthly repayments you could get. Then when you're ready, you can start your loan application.

When you apply, we'll give you a quote. The quote will be based on the information you give us, so it will be just for you. You can then decide if you want to continue with the application. Getting a personalised quote doesn't affect your credit rating.

When you have your quote, compare the interest rate and term to your current debts. A higher interest rate or longer term could mean you'll pay more over time.

It depends. When you apply for a loan, you'll need to agree to a credit check. We use that to decide if we're able to offer you the loan. We'll tell you what our decision is and whether or not we can accept your application.