Looking for a consolidation loan?

If your reason for borrowing is to pay off existing loans or credit, a debt consolidation loan from 118 118 Money may be easier to manage.

What is a consolidation loan?

Debt consolidation is where you take all your current debts, generally short-term loans with high cost APRs and combine them into a single, more manageable loan. So, for example, if you’re paying off a credit card, loan and hire purchase agreement, you could use a debt consolidation loan to settle all your balances and replace them with a single, monthly repayment to your new lender.

Most debt consolidation loans are secured on your home but some lenders, including 118 118 Money, do not use your home as security because we offer slightly lower borrowing limits. A 118 118 Money loan allows you to borrow between £1,000 and £5,000 over a period of 12 months, 18 months or 24 months.

Use our loan calculator to see how much your monthly repayments might be.

Where can I get good advice on debt consolidation?

If you’re thinking of a debt consolidation loan, the chances are you may be already struggling with debt. As a responsible lender, 118 118 Money recommends that before you apply for a consolidation loan, you should seek debt advice to explore all your options. You can get free, reliable debt advice from the National Debtline, Citizens Advice and Step Change.

What should I consider when taking out a debt consolidation loan?

There are several key things to consider before taking out a debt consolidation loan:

What interest rate (APR) will you be paying if you consolidate your loan? If it is higher than you’re paying currently, then the total cost of your loan will increase so you won’t benefit in the long term.

What will your new monthly repayment be? If your new monthly loan repayment is more than you are currently paying, will you be able to afford it, especially if you are already struggling to repay your debts?

How long will it take to repay your consolidation loan? It may be useful to choose a loan term that makes your monthly repayments more manageable. But remember, the longer you take to pay off your loan, the more interest you will pay. So make sure you know what the total cost of your loan will be and not just how much you’re expected to pay back each month.

Don’t be tempted to keep on spending. There is little point in consolidating your debts if you continue to use other credit before your loan is paid off. So cut up your credit cards, cancel your overdraft and resist any tempting hire purchase offers.

The Money Advice Service can help you weigh up the pros and cons of debt consolidation loans.

Debt consolidation loans from 118 118 Money

In the right circumstances, debt consolidation loans can take a huge weight off your shoulders. You can pay off your debts, get your finances under control and begin to live life, free of money worries.

A 118 118 Money loan offers competitive rates of interest for people with a less than perfect credit score – much lower rates than you’ll receive from short-term lenders, log book loan companies or doorstep lenders. What’s more, we don’t charge sneaky, hidden fees or upfront payments.

We’ll only lend what you can afford so you know your monthly payments will be manageable. And the other good news is that your repayments will be arranged the day after payday.

You can apply online now or if you’d like to chat to us about your loan application, just call us on 08000 118 000 or 02920 893300*
We’re here for you 24/7.

(*08000 118 000 is free from UK landlines. Calls from other networks and mobiles may vary. 02920 893300 is charged by your provider as a UK national number.)

Representative example: Amount of credit £1,800 for 24 months. Interest rate: 71.3% pa (fixed). 24 scheduled monthly payments of £142.65. Total amount payable: £3,423.67. Representative 99.9% APR.

Rates from 35.9% APR - 99.9% APR fixed.