Yes, while most debt consolidation loans are only available to homeowners, there are plenty that could save you money if you do not own a property.
A debt consolidation loan lets you pay off your existing debts by transferring them to one loan, with one monthly repayment.
You can use this comparison to find an online personal loan you can use to consolidate your debts.
Getting the right consolidation loan
To find the right loan for your needs, follow these steps:
Work out how much you need to borrow: Add up all the debts that you would like to consolidate and include any extra charges you have to pay them off. This will be the amount you need to borrow.
Decide how long you need to pay it back: The longer you take to pay your loan back the lower your monthly payments will be. However, if you borrow for longer you will pay more overall.
Look for the lowest interest rate: This is the main cost of your loan, so you need to look for the lowest APR. This is the rate lenders advertise but it is not guaranteed as they only have to give it to 51% of borrowers.
How much can you consolidate?
You could consolidate up to £25,000 using an unsecured personal loan.
How long can you borrow for?
Most unsecured debt consolidation loans offer terms between one and five years.
If you need longer to pay back your loan a few lenders offer terms up to seven years, but this tends to only be for loans over £10,000.
You can use our loan repayment calculator to see how different terms could affect your monthly payments.
Getting the cheapest loan
To make consolidating your debts worthwhile you need to find a loan that offers a cheaper interest rate than you are currently paying.
You can use this comparison to compare interest rates before you get quotes from each lender.
Explore other options
A debt consolidation loan may not be the best way to tackle your debts. Some cheaper alternatives could be:
0% money transfer card: You can use these cards to move money into your bank account. You pay a small transfer fee and can then pay them back interest free for a set number of months. Here's how they work.
0% balance transfer card: If you have credit card debts, you could use a 0% balance transfer to move what you owe to a new card. You may have to pay a small fee and then you can pay it back interest free for a set time. Here's how they work.