• >
  • Unsecured debt consolidation loans

Compare our best debt consolidation loans

Organise and clear your debts with a debt consolidation loan. Designed to help you move multiple existing debts to one simple monthly repayment, our best debt consolidation loans could help you become debt-free quicker. Check out the table below to see interest rates and loan terms.

  • Compare loans from leading providers
  • Consolidate multiple debts into a single monthly payment
  • Apply in minutes
£

Checking won't affect your credit score

Powered by

Compare debt consolidation loans from leading companies

You'll only find results from genuine companies. Our data experts check each company before we add them to our comparisons.

118 118 Money Loans Logo
AA Personal Loan logo
BetterBorrow loans Logo
everyday loans logo
Fluent Personal Loan logo
likely loans logo
Monevo logo
M&S Bank Personal Loan logo
Post Office logo
Zopa logo

See the interest rate you’re eligible for before you apply

With real interest rates you'll see exactly how much you’ll need to pay each month. And which lenders will pre-approve your application before you apply.

Monevo example

How it works

1

Check your eligibility

Answer a few quick questions. This will not impact your credit score.

2

Compare personalised loans

See the exact amount you’ll need to pay each month – no estimates.

3

Apply online

Complete your application on the lender website. You could get your money in hours.

Compare debt consolidation loans deals

Our services are provided at no cost to you. We may receive a commission from the companies we refer you to, but this does not affect what you will pay for the product you choose.

12 results found, sorted by lowest representative apr. How we order our comparisons.
Sort
AA Personal Loan Ex/C Member
Loan amount
£1,000 to £25,000
Representative APR
2.8% APR (£15,000 to £19,999)
Loan term
1 year to 7 years
Personal loan with 12 months breakdown cover at no extra cost, existing AA members are entitled to an add-on at no extra cost.
Available to existing customers only.
Representative Example: Representative 8% APR fixed. Based on a loan of £4,000 for 36 months at 8% p.a. Total £4,493.88 repayable at £124.83 per month.
Eligibility
UK Resident
Minimum Age21 years
Minimum Income£12,000
Credit Rating Acceptedgood
AA Personal Loan
Loan amount
£1,000 to £25,000
Representative APR
2.9% APR (£15,000 to £19,999)
Loan term
1 year to 7 years
Personal loan with 12 months breakdown cover at no extra cost, existing AA members are entitled to an add-on at no extra cost.
Representative Example: The representative rate is 3.0% APR (fixed) so if you borrow £17,500 over 60 months at a rate of 3.0% p.a. (fixed) you will repay £314.14 per month & £18,847.80 in total.
Eligibility
UK Resident
Minimum Age21 years
Minimum Income£12,000
Credit Rating Acceptedgood
Monevo Personal Loan
Loan amount
£1,000 to £35,000
Representative APR
10.6% APR (£15,000 to £19,999)
Loan term
1 year to 5 years
Monevo is a credit broker and not a lender.
Representative Example: The representative rate is 10.6% APR (fixed) so if you borrow £15,000 over 5 years at a rate of 10.6% p.a (fixed) you will repay £319.57 per month and £19,174.37 in total.
Eligibility
UK Resident
Maximum AgeUnlimited
Minimum Age18 years
Minimum Income£7,000
Credit Rating Acceptedpoor

Powered by Monevo to show you real rates

Your personalised bad credit loan results are powered by Monevo. They make sure you only see real interest rates. Not just estimates like some lenders show you.

Monevo black
Monevo feefo
Debt consolidation saving 4:3

What are debt consolidation loans?

Debt consolidation loans allow you to merge all your debts into a single loan by allowing you to borrow money to pay off all your existing debts. Once your debts are merged, you’re able to switch to just one monthly repayment to a single lender.

Debt consolidation loans can be used to pay off credit cards, store cards, overdrafts, buy-now pay later debt and other personal loans.

The goal of a consolidation loan is to simplify your repayments, as well as hopefully save you money on interest.

Can you get an unsecured debt consolidation loan?

There are two principal types of debt consolidation loan - secured and unsecured.

The majority of debt consolidation loans are only available to homeowners, so they tend to be secured loans.

But unsecured consolidation loans do exist and can still save you money on your debts.

Unsecured consolidation loans are not secured against anything you own, such as a property or vehicle, so they are more reliant on your credit score.

You can find out more information on how credit scoring works here.

How to find the best debt consolidation loans

When you start looking for debt consolidation loans, there are a few steps you can take to make sure you get the right one for your needs.

  • Decide how much you need to borrow: Add up all the debts that you want to pay off with your debt consolidation loan. Don’t forget to include any extra charges you’ll need to pay to pay your debts off early.

  • Think about how long you’ll need to pay it back: The longer you take to pay back your debt consolidation loan, the lower your monthly payments will be. But, of course, the longer you take to pay it off, the more interest you’ll end up paying back overall.

  • Look for the lowest interest rate: The interest rate is the biggest cost on consolidation loans, so it’s important to find the lowest rate you can. Lenders advertise their representative APR, but that’s just the rate they promise to give to 51% of borrowers. The rate they offer you could be higher or lower depending on your credit history and other factors.

How much debt can you consolidate and for how long?

Our debt consolidation loans go up to £25,000. That means you could consolidate up to £25,000 of debts using an unsecured debt consolidation loan.

You’ll find that debt consolidation loans usually offer terms of between one and five years. However, some of the UK’s leading lenders do offer up to seven years. In general, longer loan terms require you to borrow a larger amount of money, so they may not be available if your consolidation loan amount is less than £10,000.

Money debt illustration wide

How can I get the cheapest debt consolidation loan?

It’s only worth doing debt consolidation if you can find a debt consolidation loan that gives a cheaper interest rate than you’re already paying cumulatively on your debts.

Our loan repayment calculator can help you to see how changing the term can affect your monthly payments and in turn make it cheaper in the long run. By trying out different term lengths and interest rates, you can see if debt consolidation is suitable for you.

What are the pros and cons of debt consolidation loans?

  • Reduce monthly payments
  • Could be cheaper to pay off
  • Only owe money to a single lender
  • Could take longer to pay off
  • May have to pay fees
  • Could cost more in the long run

"When working out if an unsecured debt consolidation loan can save you money, make sure you take any early repayment charges on existing debts into account.

"If you don't do this, you could see your new loan end up costing you more than your old ones."

What are the alternatives to debt consolidation loans?

A debt consolidation loan may not be your only option. Even the cheapest consolidation loans might not be the best way to consolidate debt, depending on your situation. It’s sensible to look into alternatives as well.

And remember, if your debts are getting on top of you, or you don't have the best credit rating, you can get free debt advice from a range of charities in the UK¹.

0% money transfer card

You can use these to move money into your back account, for a small transfer fee. And then you pay them back, interest free, over a set amount of time.

0% balance transfer card

These are good for people with credit card debts. You move what you owe onto a single, new card, for a small fee. Then you can pay them back, interest free, over a set period.

About our loans comparison

Unsecured debt consolidation loan FAQs

Explore personal loans guides

See more guides

A beginner's guide to loans

Exactly what is a loan? What can you use it for and how do you get one? Find answers to all your questions about loans here.

Read More

Should you get an overdraft, credit card or loan?

Choosing the right way to borrow money can make it cheaper and easier to manage. Here is when you should use a credit card, loan or overdraft.

Read More
Letter cubes stacked on top of each other to spell our loans with two small business figures next to it.

How to manage your loan

Keeping a check on your landline tariff can help you save money and quickly resolve problems with your phone company. Here is how to manage your landline service.

Read More
Toy car driving over coins

How to get the best car finance

To get the best car finance deal, you need to shop around. Do not just go with the offer you’re given by a car dealership. You must meet the repayments, otherwise your vehicle may be repossessed.

Read More
Keys with house

Should you borrow against your home?

Should you borrow against your house? Find out if taking out a secured loan against your home is sensible or something to avoid.

Read More
Weighing scales with a pile of receipts on one side in the air and a piggy bank on the other weighing it down

What happens if you are unable to pay back your loan?

When you miss a payment on your loan, you'll be charged a fee. You may be issued with a County Court Judgement or have to declare yourself bankrupt if you continue to miss payments.

Read More

Why compare unsecured debt consolidation loans with money.co.uk?

By comparing loans, you could save money on your interest payments. Our award-winning loan comparison service makes sure you get our best interest rates. Our aim is to provide you with the most up-to-date information, as well as useful tools and calculators so to help you make life's most important decisions and take control of your money.

Proud to be award winning

We have always aimed to provide the best possible services to bridge the gap between our users and our clients. Over the years, we have been thrilled to be recognised by various prestigious bodies and organisations for those efforts.

stevie award
WMA 2021 Logo-768x632
nba logo
logo dma
ecommerce awards

¹Stepchange debt charity offers free expert debt advice, along with National Debtline and Citizen's Advice.

Last updated: 31 January 2022