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Want to consolidate debt?

Free, online debt advice available now.

Get debt help

Debt consolidation loans

Free debt consolidation loans

A debt consolidation loan is a special loan you use to pay off all your debts. This means you only have to make one monthly payment to the loan.

A "free" debt consolidation loan does not have fees to set up. But it will still have interest.

Not sure how to deal with your debts? We can help. Use our free online debt advice tool.

Is it a good idea to get a debt consolidation loan?

A consolidation loan is tempting because:

  • You only make one payment each month
  • Budgeting is easier if you only have one debt

However, even free consolidation loans are risky because:

  • They can carry higher interest rates
  • They may take longer to pay back
  • This makes it more expensive in the long run

Use our debt consolidation calculator to find out if this is the best option for you.

How expensive are debt consolidation loans?

This depends on the interest rate a lender offers you.

This can be affected by:

  • How much debt you have
  • Whether you miss payments on your debts

You may only be able to borrow at a higher interest rate.

This means you pay more over the lifetime (or term) of the loan.

How do I pay back a debt consolidation loan?

You will either have to:

  • Make larger monthly payments
  • Pay the money back for a longer time

Anytime you apply for a loan you should make sure:

  • What the monthly payments are
  • How many payments you will need to make in total

Secured and unsecured debt consolidation

Securing a loan against your property puts your home at risk.

Before you consolidate debt you should always:

  • Look at your situation
  • Understand your options

Learn more about debt consolidation loans and your home.

Is debt consolidation right for me?

Get debt advice to find out what options are best for you.

We will:

  • Look at your budget
  • Explore your recommendations
  • Support you to set up a solution
mum at the table with bills

Want to consolidate debt?

Free, online debt advice available now.

Get debt help

"They were so kind, they listened patiently and helped me through the process" Alison, Kent

Answer 5 quick questions to find out. It should only a minute to get a clear picture of whether you are on top of your credit card, store card and catalogue repayments or not.

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Did you pay only the minimum payment last month?


Do you regularly pay only the minimum payment?


Have you had any letters warning you that you are in 'persistent debt'?


Do you ever miss payments to your credit card, store card or catalogue accounts?


Do you worry about not being able to keep up with repayments or not being in control of your credit?

You are in control

Based on your answers it sounds like you are in control of your repayments.

You are reducing your balance. And you are also saving money by not paying interest.

This because you are not missing any payments and you are not just paying the minimum each month.

Stay in control! Make the most of your money with income-boosting, money-saving tips.

Read our budgeting guides

Things are okay

Based on your answers, it sounds as though you are mostly keeping on top of your repayments at the moment.

That is great. By paying more than the minimum payment each month, you can:

  • Reduce your credit card balance quicker
  • Save yourself money because you’ll pay less in interest

Find out more about what can happen if you’re only making minimum payments by clicking the button below.

Find out more about persistent debt

Things could be a bit better

Based on your answers it looks as though you are doing everything you can to keep on top of your repayments. But you might be able to make improvements.

If you depend on making the minimum payment each month, you are at risk of your account being in ‘persistent debt’. Your creditors will contact you and ask you to pay more each month.

Find out more about persistent debt

And if you have missed any payments, you might be struggling to keep on top of your finances. Find out how we can help you.

You need debt help

Based on your answers, it looks like you’re struggling. We can help you out. Please get in touch with us for free debt advice.

Use our online debt advice tool for tailored budgeting advice and a personal action plan.

Get debt help now

Or if you would like to talk to a debt advisor, please call us on 0800 138 1111.

John, Greater Manchester

StepChange don't judge you. They're here to help. I feel a lot less stressed thanks to them.

Richard, East Anglia

Words can hardly describe how great a service StepChange do, I feel like my life has improved so much thanks to the help they provide.

Jessica, Gwent

They've helped me so much! Can't thank them enough.

Brendan, Stirlingshire

A big thank you to StepChange for not judging me and for all your assistance and support.

Beth, Devon

The service has been amazing, I feel a massive weight off my mind and no longer worry about my finances.