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Debt consolidation loans

  • Combine existing debts
  • Borrow from £1,000 - £5,000
  • Repay over 1 - 3 years
Check my eligibility now This won't affect your credit score

Representative example: Amount of credit £2,000 for 24 months. Interest rate: 41.2% pa (fixed). 24 scheduled monthly payments of £123.64. Total amount payable: £2,967.43 Representative 49.9% APR.

Why take out a debt consolidation loan?

Got a store card here, and a credit card there? Finding it hard to keep on top of several payments going out on different days of the month? A debt consolidation loan is one, single loan which can be taken to pay off several other debts including loans, store cards and credit cards.

As a debt consolidation loan could allow you to put your existing debts into one place, you’ll have one, simple monthly repayment on a set date, rather than lots spread out. Reducing the number of payments going out of your account on a monthly basis could help make it easier to keep on top of your outgoings. If the rate on a new consolidation loan is lower than that on your existing borrowing, it could also help you to save money on your monthly loan instalments in the short term. However, if you consolidate over a longer period, it could cost you more over a longer period of time.

Apply for a debt consolidation loan from 118 118 Money
Use our Eligibility check to find out if you'll be accepted before you apply, without affecting your credit rating!
Check my eligibility now This won't affect your credit score
How do I get a debt consolidation loan?

Here is a guide to getting a debt consolidation loan:

1. List all your existing loans, store cards, credit cards and overdrafts, along with the current balance, APR / interest rate and monthly repayment amount.

2. Total up the current balances and monthly repayments – remembering that if you are currently paying 0% on any of them, then paying them off with a consolidation loan with a higher interest rate, means you will then be paying more overall until your promotional rate expires.

3. Now that you have an idea of how much you need to borrow, and how much you are currently paying out a month, you can check to see the debt consolidation loans available to you.

4. You could do this by checking directly with a debt consolidation loan provider, a price comparison site or with existing lenders. To check if you are eligible for a debt consolidation loan with 118 118 Money use our eligibility check

5. Once you’re happy that you’ve found the best deal for your debt consolidation loan, you can make your application.

6. When you receive your debt consolidation loan, you’ll need to pay off all the existing creditors you wanted to consolidate.


3 simple steps to a debt consolidation loan

  • Check your eligibility with no impact to your credit score
  • Check our offer, set up your account, direct debit and sign
  • Receive funds in 15 minutes*
Check my eligibility This won't affect your credit score *This can vary depending on your bank.

What is a debt consolidation loan and how does it work?

A debt consolidation loan allows you to pay off multiple different debts with a single loan. Your new debt consolidation loan will usually be paid directly to you, and it is your responsibility to pay off your existing creditors – you should do this as soon as you receive your new loan.

To avoid building up more debt, if you’re sure you won’t need the borrowing facilities again in the future, it is a good idea to close any store or credit cards, and reduce your overdraft limit, avoiding spiralling debt.

Once you’ve settled with your other lenders, you’ll have one single monthly repayment for your debt consolidation loan.

Does 118 118 Money offer debt consolidation loans?

Yes – 118 118 Money does offer loans which you can use to consolidate existing loans and credit cards. Subject to affordability, if you are eligible, you could borrow £1,000 to £5,000 with repayment terms to suit you, over a period of 12-36 months. We’ll pay out your loan to consolidate debt directly to you - you’ll then need to pay off all of the things you wanted to clear with your debt consolidation loan. Missed or late repayments on a 118 118 personal loan will incur a £12 charge.

Apply for a debt consolidation loan from 118 118 Money

Want to apply for a debt consolidation loan from 118 118 Money?
You can try our eligibility check first to see if you’ll be accepted before you apply – and it won’t affect your credit rating.

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Debt Consolidation Loan FAQs

A debt consolidation loan means multiple direct debits / repayments will be consolidated into one place (as long as you use the loan to pay down your outstanding agreements). When you make your monthly repayment, you’ll know exactly what is leaving your account and when. You won’t have to juggle multiple repayments anymore as you’ll have one simple transaction per month. It is important to remember that you will need to take charge of your finances and close existing accounts instead of borrowing more on top of your existing loans, credit cards and overdrafts. By doing this you will help enforce a more stable and better financial future, instead of building up more debt.

You could lower your existing monthly repayments by spreading your debt consolidation loan over a longer period, however, this could be a potential disadvantage as borrowing over a longer term will likely increase the cost of borrowing overall. As well as the longer term potentially increasing the cost of borrowing, so too could the interest rate if this is higher than that on your existing credit commitments.

You can get debt consolidation loans which are secured, as well as loans for debt consolidation which are unsecured. Secured loans are usually secured against an asset like your home, if you’re a homeowner, or your car. Unsecured loans don’t require any form of security or asset to be secured against. To find out what you qualify for, you can use a comparison site to find the range of debt consolidation loans which are available to you. If you were to take out a debt consolidation loan with 118 118 Money, this would be an unsecured loan.

You would only need a guarantor for your debt consolidation loan if you are applying with a lender that only offers guarantor loans. Provided that your lender’s affordability assessment shows you can afford your debt consolidation loan repayments, then you would not need to apply via the guarantor loan route. You do not need a guarantor to get a loan from 118 118 Money.

A debt consolidation loan can be a way of paying off your existing debts more quickly and getting you on track to clear your borrowing. If they have them, you can use lenders’ eligibility checks to see if you’re eligible for their debt consolidation loans, without impacting your credit score. Making your debt consolidation loan repayments in full and on time will show good repayment behaviour which in turn could contribute to improving your credit score.

Yes – there are lenders who will give you a debt consolidation loan if you think you might have bad credit. You could also get a debt consolidation loan if you have little credit and want to move it into one place. If you do have bad or poor credit, you may find that the debt consolidation loan rates available to you are not as low as those on offer to borrowers with good or better credit or are higher than your existing credit arrangements – in this case if you can wait a while and keep making your repayments on your existing borrowing whilst you improve your credit, you can then apply for a debt consolidation loan a little further down the line. Use our eligibility check to see if you are eligible for a loan from 118 118 Money.


Ready to apply for a loan to consolidate debt from 118 118 Money?

You can try our eligibility check first to see if you’ll be accepted before you apply - and it won't affect your credit rating!