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Consolidating Credit Card Debt

Borrow from £5,000 up to £75,000.

Varying loan term length limits from 12 months.

A simple, clear application process to help you find the right way to manage your existing credit card debt.

Regain control of your finances and combine your debts into one loan repayment.

An advisor and customer holding up two credit cards.

Representative 14.8% APR

We are a broker, not a lender.

Representative Example: Borrowing £15,000 over 60 months, repaying £355.28 per month, total repayable £21,316.57.

Total cost of credit £6,316.57.

Interest rate 14.8% (variable).

The lenders on our panel offer loans for 12-360 months, with rates from 4.7% APR to 42.6% APR.

The Representative Example is based on all loans paid out by lenders between 1st Jan 2022 and 31st Dec 2022.

What Are Credit Card Consolidation Loans?

A debt consolidation loan is a type of personal loan that allows you to consolidate your existing debt from multiple sources, such as credit cards, into a single loan. This could make your debt easier to manage, as you’ll only have one monthly repayment to worry about instead of several. It may lower your monthly repayments and potentially reduce the amount of interest you pay overall.

Debt consolidation is a strategy that involves taking out a new loan to pay off existing debts. This could include debts from credit cards, store cards, overdrafts, or other loans. The idea is to consolidate, or bring together, all your debts into one simpler loan. This makes managing your debt simpler, as you only have one lender to deal with and one monthly repayment to make.

However, it’s important to remember that a debt consolidation loan doesn’t reduce the amount you owe. It merely shifts your debt from several smaller loans to one larger loan. The key benefit is that it could help to make your debt easier to manage and could potentially save you money if you can secure a lower interest rate.

Three credit cards stacked on each other.

How Do Debt Consolidation Loans Work for Credit Card Debt?

When you take out a debt consolidation loan for repaying credit card debt, you use the funds to pay off your existing credit cards. This effectively consolidates your debts into one loan. This means you only have one lender to repay, which can simplify your monthly budgeting.

A debt consolidation loan to pay off credit cards could also be a great way of reducing the interest that you need to pay each month. Although, this is dependent on the APR you are offered.

Simplifying Your Finances

One of the main advantages of a debt consolidation loan is that it can sometimes help to simplify your finances. Managing multiple debts can be stressful and confusing. You might have different repayment dates to remember, and different interest rates to keep track of. By consolidating your debts into one loan, you can eliminate this confusion. You’ll have just one repayment to make each month, and one interest rate to consider.

Potential Savings

Another potential benefit of a debt consolidation loan is the possibility of saving money. If you’re currently paying high-interest rates on your debts, a debt consolidation loan could potentially offer a lower rate. This could reduce the amount of interest you pay over the life of the loan, saving you money in the long run. However, it’s important to remember that while your monthly repayments may be lower, you could end up paying more overall if the term of your new loan is longer than your original debts.

Is it a Good Idea to Consolidate Your Credit Card Debts?

If you’re struggling to remember to pay off each credit card every month, or if a consolidation loan will result in you paying less interest, then consolidating your credit card debt could be a great idea. Consolidation loans aren’t the best option for everyone, but they can be a way to regain control of your finances and consolidate your loans into one single monthly payment.

Our Experts Comment on Consolidating Credit Cards

Financial Expert Andrew Hagger.

Consolidating credit cards using a consolidation loan can be an effective way to manage credit card debt and improve your financial health. However, it’s important to carefully consider your options before taking out a consolidation loan. Additionally, it’s crucial to address the underlying reasons why you accumulated credit card debt in the first place and develop a plan to avoid accumulating debt in the future.

— Andrew Hagger, at Consolidation Expert.

How to Get a Debt Consolidation Loan

To get a debt consolidation loan to take control of credit card debt in the UK, all you need to do is apply! If you’re eligible, you may be able to start consolidating your debt.

Before applying for a loan, it’s important to work out how much you need to borrow to pay off your existing debts, and how much you can afford to repay each month.

Top Tip:

Remember, the goal is to make your debt more manageable and potentially save money, so it’s important to choose a loan that helps you achieve these objectives.

A green laptop with a large Apply button.

For Credit Card Consolidation Loans, Contact Consolidation Expert Today

At Consolidation Expert, we work with a panel of lenders who provide a complete range of consolidation loans in the UK, which may be able to help you overcome all manner of debt, including credit card debt. With our help, you may be eligible to get a consolidation loan.

A woman talking on the phone.

Credit Card Consolidation Loans FAQs

To consolidate your debt using a credit card debt consolidation loan, you need to apply for a personal loan with a lower interest rate than the rates you’re currently paying on your credit cards and loans. If you’re approved, use the loan amount to pay off your existing debts. You will then be able to focus on repaying the single debt consolidation loan with manageable monthly payments.

A debt consolidation loan could help improve your credit score if used responsibly. Making timely payments on your new loan will have a positive impact on your credit rating. However, failing to pay back the consolidation loan on time or taking on additional debts can negatively affect your score.

When applying for a personal loan to consolidate your debt, you should consider factors such as interest rates, representative APR, loan terms, monthly payments, and any associated fees and charges. Ensure that you can comfortably afford the monthly payments while comparing these factors with your current debt repayment terms. It’s important to remember that a debt consolidation loan isn’t the right choice for everyone.

You usually need a good credit rating to get approved for a debt consolidation loan with favourable terms.

However, at Consolidation Expert, our panel of lenders may be able to offer loans to borrowers with poor credit scores. Our consolidation loans for bad credit could help you to regain control of your finances and start on the path to rebuilding your credit score.

Once your application is approved, the funds from a debt consolidation loan can usually be made available within a few working days. The exact amount of time it takes for the funds to enter your account depend on a range of different factors, including the date, your bank account, the amount of money you’re borrowing and so forth.

Yes, using a debt consolidation loan calculator can help you estimate your potential savings by comparing the current interest rates on your credit cards and loans with the proposed consolidation loan’s interest rate. The calculator will also show you the potential new monthly payment and total interest you’ll pay over the loan term.

If you’re struggling with debt repayment and a debt consolidation loan is not suitable, consider seeking free debt advice from a qualified professional. They can help you explore alternatives such as debt management plans, debt relief orders, IVAs, or bankruptcy, depending on your situation and the severity of your financial problems. It’s also possible that you could be offered a secured loan, which typically comes with a lower APR and more generous loan amount and term limits.

While many debt consolidation loans come with a fixed annual percentage rate, some lenders may offer variable APRs that fluctuate based on market conditions. It is essential to consider the stability of the APR when choosing a loan, as a variable rate might increase your monthly payment over time. Again, make sure to read any documents you receive during the application process carefully, and understand exactly what you’re signing up for before signing anything.

If you want to repay your debt consolidation loan in full before the end of the loan term, you may incur an early repayment fee, depending on your lender’s terms and conditions. It is crucial to verify your lender’s policy on early repayments and consider any fees associated with it before signing the loan agreement. Repaying the loan back early can sometimes be a good choice – however, that depends on a range of factors, including how long you have left on the loan, the interest rate, and any fees associated with early repayment. It is important to calculate the total cost of paying off your loan early versus the total cost until the full term ends before making a decision.