Debt Consolidation Loans UK (2026)
Multiple debts weighing you down? Consolidate into one payment. Compare reviewed lenders and see if consolidation could save you money.
A debt consolidation loan combines multiple debts — credit cards, overdrafts, store cards, other loans — into a single monthly payment to one lender. The goal is simple: reduce the number of payments you juggle each month and, ideally, reduce the total interest you pay. UK consumer credit has grown 8.5% annually, with credit card debt exceeding £73 billion. More people are consolidating than ever.
Consolidation only saves money if the new loan has a lower interest rate than your existing debts. If you are paying 21% on credit cards and 40% on store cards, consolidating at 49.9% APR with 118118 Money could still reduce your total cost — but only if you close the old accounts afterwards. The danger is consolidating, then running up the old debts again.
When consolidation makes sense: you have multiple debts at different rates, you are finding it hard to keep track of payments, and you can access a lower overall rate. When it does not: you are already in serious financial difficulty (StepChange offers free help), you would borrow more than you currently owe, or the consolidation loan has a longer term that increases total interest.
This is the highest commercially valuable page on our site — which tells you how much demand exists. If you are considering consolidation, take time to compare properly. 118118 Money at 49.9% APR over 1–5 years is the standout option on our panel for amounts up to £8,000. For free, independent debt advice, StepChange (0800 138 1111) helps thousands of people every week.
Who qualifies?
What helps your application
- ✓UK resident aged 18+
- ✓Regular income
- ✓Clear picture of your existing debts
- ✓Active UK bank account
Bad credit and consolidation
- ✓Bad credit makes consolidation harder but not impossible
- ✓Some lenders accept poor credit for consolidation
- ✓Free debt advice may be a better first step
Income types accepted
- ✓Employment income (any type)
- ✓Self-employment with evidence
- ✓Benefit income (some lenders)
What to prepare
- ✓List of all current debts and balances
- ✓Interest rates on each debt
- ✓Monthly payment amounts
- ✓Total you need to consolidate
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Independent loan comparison. Rates shown are representative; your actual rate depends on circumstances.
Warning: Late repayment can cause you serious money problems. For help, go to MoneyHelper.org.uk. Nudge Finance is an independent loan comparison site. We are not a lender and do not provide financial advice.
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