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You may be able to consolidate debts with a special loan to pay off existing credit. This is called a consolidation loan.
There may be risks and extra costs. Get impartial advice before going ahead.
Maybe it is a strain to keep on top of monthly spending. Or you don't know what to do when your fixed rate mortgage ends.
Together, we can look at your situation and unlock your options.
Read our homeowner guides.
A consolidation loan can reduce:
You can also consolidate credit card debt by moving the balance to lower interest cards.
Consolidating debt could make your situation worse. It may not be an option at all if you have a poor credit history.
Get free, expert debt help before taking out a consolidation loan.
Debt consolidation and debt management are two different things.
Use our debt consolidation calculator to find out if you need debt consolidation or debt advice.
Find out more about the differences between debt consolidation and debt management.
Debt consolidation loans are not right for everyone. Check all available options before making a choice.
A debt consolidation loan will mean you only have one company to pay back each month.
But there are some drawbacks that you need to be aware of:
You should always check you can really afford to repay any credit you apply for.
Any way you decide to deal with debts should make your life easier, not harder.
Use our free debt consolidation calculator to find out if this is right for you.
For more information, download our debt consolidation guide (PDF)
Unsecured means the loan is not linked to your home.
Some consolidation loans need you to secure the loan against your home.
That means if you fall behind or cannot afford payments, your home could be repossessed.
In some cases you can use the equity in your home to manage debts or support your retirement, but make sure you get expert mortgage and equity release advice first.
Find out more about secured and unsecured debt consolidation loans and your home.
If you keep up with payments, your credit score should not be affected by the loan.
If the cost of the new loan is hard to manage, and you miss payments, this will show on your credit file.
Many things can affect your credit file:
Any of these would mean you are more likely to be offered a consolidation loan with higher interest.
If this is the case, consolidation loans may not be the best option for you.
Find out more about how debt affects a credit file.
It is important to understand the reality behind the claims made in adverts.
Reality: Having a debt consolidation loan does not stop you using credit. Many people end up taking on new debts while they have the loan. This means paying back more than one company again
Reality: This does not exist. Any company saying there are government debt consolidation schemes is misleading you.
Reality: Paying less each month means taking longer to pay off debts.
Reality: Because debt consolidation loans last longer, they often end up with higher total interest to pay
Reality: Debt consolidation loan payments are only manageable if they fit into a properhousehold budget that you can stick to.
"They were so kind, they listened patiently and helped me through the process" Alison, Kent
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