Loans for Debt Consolidation

You will qualify for a debt consolidation loan if you are approved for a new loan of an amount that enables you to pay back at least two existing debts. Your eligibility is assessed in a new credit application and will be accepted based on your credit score and circumstances.

You could get a decision in principle within 24 hours. If you're applying for unsecured debt consolidation, you could be approved and have the funds paid to you within a matter of days. If yours is a secured loan, that timeframe is likely to be longer.

Yes. As with most loans, it is sometimes possible to repay the amount in full ahead of time. However, it's important to remember that this may incur an early repayment fee. This amount usually varies depending on your debt consolidation lender. Always check the terms of your loan before you apply.

If you miss or fall behind on your repayments, you could incur late fees and it could have a negative impact on your credit score. And if you have taken out a secured consolidation loan, you could be at risk of losing the asset you put up as collateral – usually your home.

If you reach a point where you think you might miss a monthly instalment, speak to your debt consolidation lender. You may be able to work out a different payment schedule that is more manageable for you.

If you think you might need a break from repayments at any point, you should check the terms before applying. While some lenders do offer 'payment holidays' on loans for debt consolidation, these can show up as a negative on your credit report.

Also, be aware that if credit is repaid by a consolidation loan over a longer term, the amount repayable may be higher.

Applying for any form of credit could mean a temporary decline in your credit score, especially when multiple searches are placed on your credit file.

However, taking out a debt consolidation loan in isolation doesn't negatively impact your overall credit score. In fact, it could act as a boost as you make repayments in full and on time and prove your reliability as a borrower.

Just make sure to keep on top of making payments regularly. If you're concerned about any negative implications, it's important to seek advice from one of our experts beforehand.

Unlike a secured loan, an unsecured debt consolidation loan (also known as a personal loan) isn't linked to any property you hold. That means, if you fall behind in payments, a lender won't be able to take ownership of your property.

Debt consolidation without the risk of losing your property may instead be subject to higher rates.

Yes. When you apply for a joint loan, both of you are equally liable for repaying the total sum owed. You are taking the loan out together, which means your finances will be linked. So, if you miss any payments, both of your credit scores could be negatively affected.

You can borrow anything from £3,000 to £500,000 when you choose Norton Finance and our trusted network of debt consolidation lenders.

No. You can pick which debts you want to repay with your consolidation loan. But you need to prove that you can continue to pay off any other debts as well as your loan.

Repayment terms vary between 1 and 30 years. They usually depend on your personal circumstances, including how much you borrow and the amount you can comfortably afford to pay back each month. Here's a summary of how your chosen repayment term could affect the overall cost of your debt consolidation loan:

• A shorter repayment term means higher monthly instalments, but you'll pay back less overall, because you're not charged interest for as long.
• A longer repayment term means lower monthly instalments, but you'll pay back more overall due to the added interest that builds up over time.

If you're a homeowner, our secured loan rates start at 5.39%. The interest rate you're offered will depend on your individual money management history and current credit score.

A fixed interest rate will stay the same for a set period of time, possibly for the length of your repayment term. That means your instalments are always for the same amount, which makes it easier for you to budget from month to month.

A variable interest rate follows the Bank of England base rate and can go up or down. That means your repayments can also change from one month to the next – sometimes they might be higher, and sometimes lower.

We may charge a broker fee of up to 12.5% on all secured debt consolidation loans, capped at £4,950. We don't charge fees on unsecured debt consolidation loans, as we receive a commission from the lender.