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
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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
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