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Compare debt consolidation loans

Clear your debt with a debt consolidation loan by combining your debt and making a single monthly repayment. Find consolidation loans with low APRs to save on interest.

8 results found, sorted by lowest representative apr. How we order our comparisons.
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RateSetter Personal Loan - Exclusive
Loan amount
£3,000 to £25,000
Representative APR
2.8% APR (£5,000 to £25,000)
Loan term
1 year to 5 years
Representative example: Representative 2.8% APR fixed. Based on a loan of £10,000 and £278 arrangement fee for 24 months at 2.8% p.a. Total £10,295.28 repayable at £428.97 per month.
Eligibility
21 years
£12,000
See Deal
Freedom Finance Personal Loan
Loan amount
£1,000 to £25,999
Representative APR
6.8% APR (£23,000 to £23,999)
Loan term
2 years to 7 years
Freedom Finance is a credit broker and not a lender. The %APR rate you will be offered is dependent on your personal circumstances.
Representative example: The Representative rate is 14.47% APR (variable) so if you borrow £10,000 over 5 years at a rate of 14.47% p.a (variable) you will repay £230.57 per month & £13,833.94 in total.
Eligibility
70 years
18 years
£12,000
fair
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
75 years
18 years
£7,000
poor
Aspire Money Personal Loan
Loan amount
£500 to £25,000
Representative APR
30% APR (£13,001 to £25,000)
Loan term
1 year to 5 years
No upfront fees and can source loans that don't require a guarantor. Please only apply if you are aged 18 to 65.
Aspire Money is a credit broker and not a lender.
Representative example: The Representative APR is 58% APR (fixed) so if you borrow £5,000 over 36 months at a rate of 58% p.a (fixed) you will repay £260.26 per month & £9,369.36 in total.
Eligibility
65 years
18 years
poor
Everydayloans Personal Loan
Loan amount
£1,000 to £15,000
Representative APR
99.9% APR (£1,000 to £15,000)
Loan term
2 years to 5 years
No effect on your credit rating on initial application. No fees or charges. T&Cs apply.
Representative example: The Representative APR is 99.9% APR (variable) so if you borrow £3,000 over 2 years at a rate of 71.3% p.a (variable) you will repay £238 per month & £5,706 in total.
Eligibility
21 years
£15,000
poor

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Last updated: 17 August, 2020

What is a debt consolidation loan?

Debt consolidation loans let you borrow money, to pay off all your existing debts. By merging all the money you owe into a single loan, consolidation loans let you switch to just one monthly repayment to a single lender. It can be used to pay off credit cards, store cards and other personal loans.

Can you get an unsecured debt consolidation loan?

Most debt consolidation loans are only available to homeowners. But unsecured consolidation loans can still save you money on your debts, and you don’t need to own a property to get one.

Unsecured consolidation loans are not secured against anything you own, such as a property or vehicle.

Use our comparison table to find an online personal loan, which you can use to consolidate debt.

How to get the right debt consolidation loan

When you start looking for debt consolidation loans, uk wide, 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 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?

An unsecured debt consolidation loan is essentially just a personal loan – and many people use them as loans to pay off debt. 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.

How long can I borrow for with a debt consolidation loan?

You’ll find that debt consolidation loans, UK wide, usually offer terms of between one and five years.

If you think you’ll need longer to pay back your debt consolidation loan, it’s worth remembering that some lenders offer loan terms of up to seven years. But you’d only be likely to get such a long term if your consolidation loan is over £10,000.

Our loan repayment calculator can help you to see how changing the term can affect your monthly payments. By trying out different options with a range of debt consolidation loans, you can see if debt consolidation is suitable for you.

How do consolidation loans affect my credit rating?

As long as you keep up with the repayments on your debt consolidation, you’ll be fine. In fact, you’ll improve your credit score by lowering your debt.

But, if you don’t keep up with the repayments, it will negatively affect your credit rating. So you need to make sure you find a debt consolidation loan you can afford.

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.

Although there are no best loans, our comparison can help you compare debt consolidation loans, and find the deal that is right for you. Check out consolidation loans, UK wide, and compare interest rates. Then get your own quote from each lender.

Are there alternatives to a debt consolidation loan?

If you’re wondering how to consolidate debt, consolidation loans can be a good place to start. But debt consolidation isn’t your only option. Even the best consolidation loans might not be the best way to consolidate debt, depending on your situation. It’s sensible to look into alternatives as well.

You could look at opening a 0% money transfer card, for example. 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.

Or, you could think about opening a 0% balance transfer card. These are good for people with credit card debts. You can 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 of time.

Unsecured debt consolidation loan FAQs

No, you can choose which debts to pay off. However, if you keep any open you have to show you can afford to pay them back alongside any new loan.

No, it is usually paid to you and then you need to pay off each of your debts separately.

Yes, lenders will check your credit record when you apply for a loan. If you are worried about bad credit here is how to overcome it and find a loan.

You may be charged a fee and your credit record will be damaged. Here is what to do if you cannot pay back your loan.

About our loans comparison

Our comparison tables include providers we have commercial arrangements with. The number of listings in our tables can vary depending on the terms of those arrangements, as well as other market developments. They are all from lenders regulated by the Financial Conduct Authority. For more information you can also see how our website works.

We have commercial agreements with some of the companies in this comparison and get paid commission if we help you take out one of their products or services. Find out more here.
You do not pay any extra and the deal you get is not affected.

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