I want to consolidate debt
You have multiple debts — credit cards, loans, overdraft — and want to know whether consolidating them into one payment makes sense, and how to do it safely.
First things to check
- 01 List all your debts with their current balance, interest rate and minimum monthly payment. A clear picture of the total is the starting point.
- 02 Work out your total monthly minimum payments. If you can already meet these comfortably, consolidation may save money on interest. If you cannot meet them, free debt help is a better first step than a consolidation loan.
- 03 Check whether any of your debts are secured against your home. Consolidating unsecured debts into a secured loan puts your home at risk of repossession.
- 04 Check whether any existing loans have early repayment charges, as these can cancel out any savings from a lower interest rate.
Know the risks
- Consolidation can extend the total time you spend in debt — meaning you pay more interest overall even with a lower monthly rate
- Secured consolidation loans put your home at risk if you miss payments
- Balance transfer fees and introductory rate expiry dates are common hidden costs
- Consolidation does not address the underlying cause of debt — without changes to spending, you may rebuild the original debts on top of the new one
A plain-English UK guide to debt consolidation loans. Covers what they are, when they may help, the risks, what to compare, and where to get free debt help.
A complete UK guide to personal loans: understanding finance options, risks & more. Plain English, no affiliate links, no financial advice.
A plain-English UK guide to secured loans. Covers how they work, the risks, what to compare, and free help if you are struggling with debt.
A complete UK guide to how to get financial advice: when & where. Plain English, no affiliate links, no financial advice.
Use a tool or checklist
When to get free help
If you are missing minimum payments, using credit cards to pay other debts, or relying on credit for everyday essentials, a consolidation loan is unlikely to solve the problem on its own. Contact StepChange, National Debtline or MoneyHelper — they can help you find a manageable solution without necessarily taking on more debt.
Useful terms to know
Struggling with debt? Free charities are ready to help.
These organisations offer free, confidential, impartial advice, with no referral fee and no catch. They help thousands of people every week.