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Debt Consolidation Loans UK Bad Credit

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  • Borrow £1,000 to £8,000
  • Repay over 12 to 60 months
  • Check eligibility with no impact on your credit score
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.

Looking for debt consolidation loans in the UK with bad credit?

If you are juggling several repayments and your credit history is not perfect, a debt consolidation loan could help you bring eligible borrowing into one fixed monthly repayment. For many people, that means fewer payment dates to manage and a clearer picture of what needs to be paid each month.

118 118 Money offers personal loans from £1,000 to £8,000, repayable over 12 to 60 months. If you have bad credit, eligibility is not based on one score alone. We also look at affordability and the wider picture before making a lending decision.

Debt consolidation is not automatically the cheapest option for everyone. If your new loan runs for longer, or the rate is higher than the borrowing you already have, you could pay more overall. That is why it is worth checking whether the monthly payment is manageable and whether the total amount repayable makes sense for your situation.

Check whether a debt consolidation loan could be right for you
Use the eligibility checker to see whether you are likely to be accepted before you apply.
Check my eligibility This won't affect your credit score
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When a debt consolidation loan can make sense

A debt consolidation loan is usually considered when you want borrowing to feel easier to manage, but it works best when the new payment is affordable and the overall cost is clear.

One payment to manage. Combining eligible debts can simplify your monthly budget if you are currently tracking several balances and due dates.

A fixed repayment plan. With a set term and scheduled monthly repayments, it can be easier to see when your borrowing should be cleared.

A soft first step. You can check eligibility before making a full application, so you can see whether a loan may be available without affecting your credit score.

Bad credit does not always rule you out. A lower score may reduce your options, but some borrowers can still be considered if the loan looks affordable.

Clearer control of your outgoings. If your repayments currently fall on different dates, moving them into one scheduled payment can help reduce the risk of missing one.

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How to apply for a debt consolidation loan with 118 118 Money

  • Check your eligibility with no impact to your credit score
  • Review your offer, set up your Direct Debit and sign
  • Receive funds in 15 minutes*
Check my eligibility This won't affect your credit score. *This can vary from 15 minutes to 2 hours depending on your bank.
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What to consider before applying

Before applying, add up the balances you want to clear and compare that total with the loan amount you need. Then look at the monthly repayment and the total amount repayable, not just the headline rate.

If you have bad credit, it is especially important to think about whether consolidating will genuinely improve your position. A lower monthly payment can feel helpful in the short term, but if the term is longer you may pay more over time.

It is also worth making a plan for the borrowing you are clearing. If you consolidate credit cards or other balances and then run them up again, you could end up in a worse position than when you started.

If your existing debts already feel unmanageable, debt advice may be a better next step than taking on new borrowing. Always think carefully before using a loan to consolidate debt.

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Debt Consolidation Loan FAQs

You may still be eligible, but approval depends on your full application, affordability and the lender’s criteria, not just your credit score.

No. Checking your eligibility with 118 118 Money does not affect your credit score.

Debt consolidation is commonly used to combine eligible unsecured borrowing such as credit cards, store cards and personal loans into one repayment.

Not always. It can make repayments easier to manage, but a longer term or higher rate can increase the total amount you repay.

118 118 Money offers loans from £1,000 to £8,000, subject to status, affordability and credit checks.

See whether a debt consolidation loan could work for you

Check your eligibility first and see whether you could be considered without affecting your credit score.

Check my eligibility
118 118 money helpers illustration
118 118 money helpers illustration