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Compare debt consolidation loans

Find the right debt consolidation loan for you

  • Compare loans from a wide range of providers
  • Work out your chance of being accepted
  • It won't harm your credit score

We compare offers from a wide range of lenders from across the market

We work with most of the big brands to help you borrow the money you need

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Comparing debt consolidation loans with MoneySuperMarket

You can use a debt consolidation loan to combine all your existing debts, making them easier to manage and potentially slashing the amount of interest you pay on them. 

Choosing the right debt consolidation loan for your circumstances is easy with MoneySuperMarket. Use our comparison service to find a deal that suits your needs without harming your credit score.

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How debt consolidation loans work

A debt consolidation loan lets you switch all your existing borrowing on to one loan, so you only need to make one monthly repayment. You can save money with a debt consolidation loan by finding one that charges a lower rate of interest – also known as an APR – than you are currently paying.

A debt consolidation loan can be used to cover a range of existing credit including:

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Credit card debt

Many credit cards charge high APRs that make them an expensive option for longer-term borrowing

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Overdrafts

The interest rates on most bank agreed overdrafts can often hit a whopping 40%

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Store cards

Store cards encourage you to  keep spending, and often have high APRs and fees 

Debt consolidation loans: The pros and cons

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    Reduce your monthly repayments

    This works particularly well if you have quite a few outstanding debts accruing interest

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    Missed payments have consequences

    You will damage your credit score if you don’t make your repayments in full each month

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    Lower overall interest

    Debt consolidation loans tend to have lower APRs than payday loans or some credit cards

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    Set-up fees can be pricy

    Your existing creditors may charge you a fee for transferring the balance of your loans

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    Easier to keep track of your debt

    Managing one repayment a month is much more straightforward than several at once 

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    You may lose your home or car

    If you can’t keep your up repayments on a secured loan, your collateral may be repossessed

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    Boost your credit score

    It’s easier to make one repayment every month, and doing so will improve your score

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    Other options are available

    For example, a 0% balance transfer credit card, might suit someone with more modest debts

How to get a debt consolidation loan

Compare debt consolidation loans and find the best deal for you

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Work out what you owe

Do the sums and find out exactly what your debts are worth in total, with outstanding interest

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Check your eligibility

Enter a few details about you and your finances into MoneySuperMarket’s Eligibility Checker tool

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We do the rest

We’ll come back with a range of debt consolidation options – and your credit score won’t be affected

Debt consolidation loans and bad credit

You can take out a debt consolidation loan with bad credit, but you are unlikely to be offered the cheapest deals. Your lender will decide which type of loan – and what APR – it can offer you after checking your credit score. 

If you have bad credit, providers may offer you a debt consolidation loan secured against your car or house, rather than an unsecured debt consolidation loan. But remember lenders can repossess the asset if you fail to keep up with your repayments, so this could be risky.

The good news is that if you keep up with the repayments on your debt consolidation loan it should lead to an improvement in your credit score over time.

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With a pre-approved loan, the deal you see is the deal you get

When you apply for a loan, it’s not always clear what deal you’ll be offered or whether you’ll be accepted. But when you’re pre-approved for a loan, you know the deal you see is the deal you’ll get – you’ll know where you stand, with information that will help you make the right choice.

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Apply with confidence

When you’re pre-approved, the loan amount, duration and interest rate are all confirmed

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Tailored to you

When you know what you’ll be able to borrow and how much it will cost, you can choose a loan that’s right for you

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You’re in safe hands

This helps protect your credit score as you’re less likely to be rejected when you apply

A debt consolidation loan is a loan you use to pay off your existing debts. Say you owe £2,000 on one credit card, £2,000 on a store card, and £1,000 on your overdraft, you could take out a debt consolidation loan for £5,000 to repay them all over a set term.

Debt consolidation loans can be a good way to take control of your borrowing, especially if you owe money to a number of different lenders. However, they aren’t right for everyone. If you only have a few debts on which you are already paying an attractive APR, it might be worth concentrating on sticking to your existing repayment plans. 

Many standard personal loans can be used for debt consolidation. However, some lenders prefer you to use their loans for specific purposes such as buying a car or renovating your home, so it’s worth checking this before you apply. If you have a lot of debt, you may also find it harder to qualify for a low-cost personal loan. 

 

Whether or not a debt consolidation loan is right for you will depend on the sort of debts you have already. For modest credit card debts, for example, a 0% balance transfer credit card could be a good alternative. But if your debts are substantial, and you’re struggling to manage the repayments, a debt management plan may be a more suitable solution. 

 

 

A number of UK-based charitable organisations offer free debt advice for those in need. These organisations include StepChange (0800 138 1111) and National Debtline (0808 808 4000). 

 

MoneySuperMarket gives you lots of clever ways to save a lot, by doing very little.

  • Take control of your credit score by checking and improving it for free with Credit Monitor
  • Never overpay again with Energy Monitor, our energy monitoring service
  • Over 50 ways to Get Money Calm

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But you might have other questions. Do we provide access to all the companies operating in a given market? Do we have commercial relationships or ownership ties that might make us feature one company above another?

We commit to providing you with clear and informative answers on all points such as this, so we have gathered the relevant information on this page.

Contact moneysupermarket.com at Moneysupermarket House, St David's Park, Ewloe, Flintshire, CH5 3UZ. © Moneysupermarket.com Ltd 2021

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