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Personal Loan for Debt Consolidation

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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.

How a personal loan for debt consolidation works

If you are looking for a personal loan for debt consolidation, you are probably trying to make your finances easier to manage. Instead of keeping up with several balances, payment dates, and interest charges, a consolidation loan can let you pay off existing borrowing and replace it with one fixed monthly repayment.

For many people, that means less juggling between credit cards, overdrafts, store cards, and other loans. A personal loan for debt consolidation will not be right for everyone, but it can be useful when you want a clearer repayment plan and a more predictable monthly budget.

With 118 118 Money, if accepted, you can borrow £1,000 to £8,000 and repay over 12 to 60 months. You can start with an eligibility check to see whether you are likely to be accepted before you apply, and it will not affect your credit score.

Check whether a personal 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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Why people use a personal loan for debt consolidation

Debt consolidation is usually about simplifying what you already owe. These are some of the main reasons people choose a personal loan to do it.

One Monthly Repayment. A personal loan for debt consolidation can help bring several repayments together into one fixed monthly amount, which may be easier to track and budget for.

Clearer Budgeting. When repayments happen on different dates across credit cards, overdrafts, and loans, it can be harder to stay in control. Consolidation can create a simpler routine.

Fixed Repayments Over Time. 118 118 Money personal loans have fixed monthly repayments, so you know the agreed amount you need to plan for each month.

Soft Eligibility Check First. You can see whether you are likely to be accepted before you apply, helping you explore your options without affecting your credit score.

Borrow What You Need Within Range. If accepted, you can borrow from £1,000 to £8,000 and choose a repayment term from 12 to 60 months based on your circumstances.

No Guarantor Needed. 118 118 Money personal loans are unsecured, so you do not need to involve a guarantor when applying.

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3 Simple Steps to Check Your Eligibility

  • 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

Check the total cost, not just the monthly payment. A lower monthly repayment can feel more manageable, but if you spread the borrowing over a longer term, you may pay more in total.

Think about the interest rate on what you already owe. If some of your existing borrowing is on a low or promotional rate, replacing it with a higher-rate consolidation loan could cost more overall.

Avoid building balances back up. If you use a personal loan to clear credit cards or overdrafts, try not to borrow on those accounts again, or your overall debt could increase rather than fall.

Make sure the repayments are affordable. A debt consolidation loan should make managing money simpler, not tighter. Review your income, regular bills, and other commitments before you apply.

If you are unsure whether consolidation is the best route, it can help to read more of our Money Guidance content before making a decision.

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Personal Loan for Debt Consolidation FAQs

A personal loan can be used to pay off existing eligible borrowing so you manage one fixed monthly repayment instead of several, if that is suitable for your circumstances.

No. 118 118 Money says its eligibility check lets you see whether you are likely to be accepted before you apply, without affecting your credit score.

If accepted, you can borrow from £1,000 to £8,000 and repay over 12 to 60 months, depending on your individual circumstances.

Not always. Consolidation can simplify budgeting, but if you repay over a longer term or at a higher rate than your existing borrowing, you may pay more overall.

Once approved and fully set up, funds could be received quickly. 118 118 Money says timing can vary from 15 minutes to 2 hours depending on your bank.

People often use a personal loan to consolidate borrowing such as credit cards, overdrafts, store cards, and existing personal loans, depending on their circumstances.

Ready to see whether a personal loan could help you consolidate debt?

Start with an eligibility check and find out whether a 118 118 Money loan could be right for you before you apply.

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