A low interest rate will help you save money when looking for a secured loan for debt consolidation, but you should also consider:

  • How much you need to borrow

  • How long you need to repay the loan

  • Which asset you want to borrow against

Work out what you need

To calculate this:

  1. 1.

    Work out the total amount you owe by adding up each debt e.g. credit cards, overdrafts, payday loans.

  2. 2.

    Work out much you repay every month by adding up each monthly repayment.

  3. 3.

    Check the term of each debt to find out how long you have left to pay them off. You can do this by checking your statements or by contacting the lenders.

This can help you work out:

  • How much you need to borrow to pay off your debts.

  • How long it will currently take to clear your debts so you choose a suitable loan term

  • How much you repay each month, so you can make sure you can afford any new loan you choose

  • How much interest you are paying so you can find a cheaper rate

This comparison shows the minimum and maximum loan amounts available.

Decide what to borrow against

Most lenders will only lend against your property but some may accept valuables like jewellery.

Check the loan to value (LTV) matches what you need. The LTV is how much you can borrow in relation to the value of your asset.

For example a £125,000 loan against your house that is worth £250,000 would have a 50% LTV.

This comparison shows the maximum LTV that companies are willing to lend against.

Compare loans

Before you apply, compare as many loans as you can to find the best one for you.

If you need help, you can get impartial advice from an FCA approved independent financial adviser. Here is how you can find an independent financial adviser.

Once you have found the right loan for you apply for it online, by phone or in a branch.