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Debt Consolidation Loans

With a consolidation loan, you can bring together your existing debts into a single, easy to manage monthly payment, all charged at one interest rate.

Make your money matters simpler when you consolidate existing credit into a single loan. Call today for a free quote (UK customers only) and see if we can help reduce your monthly outgoings by consolidating your debts into one single monthly payment.
  • We search the wider market to find the right consolidation loan product for your circumstances

  • Combine your existing loan and credit card payments into one manageable monthly sum

  • You may be able to obtain a lower interest rate than your current borrowing

  • Debt consolidation loans can offer help for those with a poor credit rating

  • Searching for a loan with Norton Finance won’t affect your credit score

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What are debt consolidation loans?

A debt consolidation loan is a type of borrowing typically used to bring your finances under control and make monthly repayments a little less overwhelming. If you’re making multiple payments for credit cards, loans or other borrowing every month, consolidating these debts with the right loan can mean you only pay one lender each month.

How do our debt consolidation loans work?

A debt consolidation loan can help you clear debts by giving you the money to pay off all your existing loans, credit cards or other debt amounts in one go. These ongoing repayments to multiple lenders would then be replaced with a single, fixed rate monthly repayment to one lender until the loan term ends.

This can help with your budgeting, as you won’t need to keep juggling several bills each month and borrowing from one lender to pay back another.

Our debt consolidation loans start from £3,000 and our friendly advisors are on hand to answer any questions about the process.

Is a consolidation loan right for me?

Whether a consolidation loan is right for you depends on your individual circumstances. Taking out a loan to consolidate your debt can make managing finances easier. If you have county court judgements (CCJs) or poor credit, our loan experts will search the market to see which loans offer the best chance of eligibility. Our guide can help you find out more about being eligible for a loan.

You must also meet the following basic criteria to be eligible for a loan:

Benefits of choosing to consolidate loans

Consolidating your loans can help you avoid juggling several individual repayments and sometimes means you pay less than short-term loans. It's also usually easier to monitor than credit card debts, which have changing interest-free periods.

As you repay your consolidation loan, you may find dealing with just one lender to be much less of a hassle too. It tends to be simpler than repaying several loans with different contacts, different days to pay and different rates.

You may also find you can clear your debts sooner with a single rate of interest. Different loans and interest payments may mean your money isn’t going towards servicing the debt – just the lender. With one loan at one rate, more of your money can go towards reducing the balance.

A bad credit debt consolidation loan can also help your credit score. Demonstrating you’re able to manage debts by keeping up with repayments could improve your credit rating, giving you access to a wider range of loan options in the future.

Disadvantages of consolidating debt with a loan

Many people may find debt consolidation is a great way to take back control of their finances. However, it may not be the best option for everyone.

In some cases, consolidating your loans might not reduce your repayments, as it depends on how much you are currently repaying and over what period. This type of loan cannot erase your debts entirely, so it’s best to see it as a new payment plan rather than a form of debt relief or settlement.

Choosing a consolidation loan with a longer repayment period could also mean you end up paying more overall than your previous individual repayments. It’s important to consider what you can afford to repay and whether paying over a longer period will make your monthly repayments more manageable.

Before you apply, you may also need to stop any further borrowing on other loans and credit cards to ensure you don’t fall further into debt after taking out the consolidation loan.

Remember that securing your loan against property, such as your home, could mean losing it if you default on loan repayments.

Can I get a loan with bad credit?

Some lenders offer bad credit debt consolidation loans, where customers who may have been rejected elsewhere can work to take control of their situation.

In some instances, you might not be able to borrow as much, and you may be offered higher interest rates than those without bad credit. But we will always try to find a loan that meets your particular needs and suits your current circumstances.

If you’re looking for a selection of consolidation loans with bad credit, one of our friendly advisors can help find you the right product.

Before you apply…

There are ways you can prepare before you apply to give yourself the best chance of being approved. This can include:

Assess the cost of repayments

Calculate how much you’re currently paying monthly, and ensure it tallies with the new repayment structure of your consolidated loan amount. This can help you decide whether combining your credit into a single repayment is a better option.

Check details on your income and outgoings

It will help lenders if you give them full details on your income and monthly outgoings, as lenders will always need this information. When making your application, it’s especially helpful to share information about your other debts, so they can be sure you can comfortably make repayments on a new loan agreement.

Look up your credit history

Familiarise yourself with your credit report so you can give lenders all the information they need and answer any queries. Lenders tend to run a credit check as part of your loan application, so they can see your borrowing history as well as any CCJs or other debts.

Representative example

SECURED LOANS - Rates start at 2.99% variable. We also have a range of plans with rates up to 65.2%, giving us the flexibility to help you find a loan that suits your needs.

Representative example: if you borrow £10,000 over 10 years at an Annual Interest Rate of 5.14% (variable), you will make 120 payments of £122.71 per month.

The total amount repayable will be £14,725.20. This includes a lender fee of £495 and a broker fee of £1,000, both of which have been added to the loan. The overall cost for comparison is 8.6% APRC representative.

The maximum APR is 65.2%.

What do I need to apply?

When you start an application online, our team will be in touch over the phone to talk through a few details. We’ll ask for further information about you, such as:

We may also discuss your current situation and the existing debts you have, as this helps us search the market for the best loan for you.

Before you get started, it’s best to make sure you have details on any outstanding amounts to hand, along with your current loan terms, monthly payments and interest rates. This can help us better understand your situation and see if we can help simplify your finances by offering a loan that would lower your monthly repayment amount. Our loan calculator can help you determine what kind of monthly repayments you might expect to make.

Why choose Norton Finance?

Norton Finance is a UK lender with the expertise to help you find the right loan, whether you’re unemployed, retired or have CCJs. We’re experienced with in-depth loan comparisons, so we can search the whole market for the best deal to suit your needs.

We have access to over 600 lending plan products, helping us find a solution for you. The loans we find could allow you to borrow from £3,000 to £500,000, so you can consolidate existing loans over a period of one to 30 years.

Once you’ve submitted your application, we’ll be able to give you an ‘in principle’ decision the next day.

Why choose Norton Finance?

Norton Finance is a UK lender with the expertise to help you find the right loan, whether you’re unemployed, retired or have CCJs. We’re experienced with in-depth loan comparisons, so we can search the whole market for the best deal to suit your needs.

We have access to over 600 lending plan products, helping us find a solution for you. The loans we find could allow you to borrow from £3,000 to £500,000, so you can consolidate existing loans over a period of one to 30 years.

Once you’ve submitted your application, we’ll be able to give you an ‘in principle’ decision the next day.

FAQs about consolidation loans

Can I pay off a debt consolidation loan early?

As with most loans, it is sometimes possible to repay the amount in full ahead of time. However, it’s important to remember that doing so may incur an Early Repayment Fee. This amount usually varies from lender to lender. Always check the terms of your loan before you apply.

Can I take a break from paying back my debt consolidation loan?

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, so it’s important to get advice before you apply.

Do debt consolidation loans hurt your credit score?

Applying for any form of credit could mean a temporary decrease in your credit score, especially where multiple searches have been placed on your credit file. However, taking out a debt consolidation loan in particular doesn’t negatively impact your credit score. In fact, over time it could boost your score as you make repayments and prove your reliability as a borrower.

Just make sure not to miss repayments and keep on top of making payments regularly. If you're concerned about any negative implications, it's important to first seek advice from one of our experts.

Are debt consolidation loans a good idea?

Depending on the amount you owe to other lenders, a debt consolidation loan could be a big responsibility to take on. Some lenders use long term loans for debt consolidation in order to make monthly repayments more affordable.

However, provided you keep up with the repayments and refrain from further borrowing at this point, you should benefit from restructuring your outgoing payments – and potentially end up paying less money on interest in the long run, subject to the length of your repayment period and interest rate charged.

What’s more, repaying your loan over time can improve your credit score, leaving you in a better position to apply for credit at more favourable rates in the future.

What is an unsecured debt consolidation loan?

Unlike a secured loan, an unsecured debt consolidation 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. Also known as a personal loan, debt consolidation without the risk of losing your property may be subject to higher rates instead.

Questions about our loans

We can give you the tools you need to better manage your financial situation, by offering a simple and flexible loan process. Our team can assist you in every way possible to ensure you get the repayment terms and interest rates that are best for you.

What can I use a consolidation loan for?

You can use the proceeds from a consolidation loan to pay off many kinds of existing debts, including the below:

CreditCard

Credit cards

Help manage multiple repayments on your credit cards by consolidating into one, simple monthly sum.
Shop

Store cards

Standardise the interest rates you pay back at for different store cards and potentially lower your regular payments.
Home

Personal loans

A personal loan can be used for just about anything, from retraining to travel.

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