Debt Consolidation Loans: Combine Multiple Debts Into One Simple Monthly Payment
Borrow anywhere between £10k and £5m. Get a decision in 24 hours.
Apply Now
Stop juggling multiple credit card payments, personal loans, and overdrafts. Simplify your finances with a single monthly payment and potentially save hundreds each month.
Struggling With Multiple Debt Payments?
Simplify Your Finances With One Fixed Monthly Payment
Managing multiple debts is exhausting. Between credit cards with different due dates, personal loans with varying interest rates, and overdrafts that keep mounting up, it’s easy to feel overwhelmed by your financial obligations. You’re not alone if you’re struggling to keep track of 5-8 different payment dates each month, watching interest charges pile up on credit card debts with APRs reaching 18-29%.
A debt consolidation loan transforms this chaos into clarity. Instead of juggling multiple monthly payments to different creditors, you’ll have just one monthly payment on a fixed date. This isn’t just about convenience – consolidating your existing debts into a single loan often means securing a lower interest rate than what you’re currently paying on credit cards, potentially saving you hundreds of pounds each month while helping you become debt free faster.
If you owe money across multiple accounts and feel trapped by mounting interest charges, debt consolidation could be the debt solution that finally puts you back in control of your finances.
Why Choose Debt Consolidation?
Debt consolidation loans offer a clear path out of debt chaos, with tangible benefits that impact both your wallet and your peace of mind.
Simplify Your Finances – Replace 5-8 different monthly payments with one fixed monthly payment that’s automatically collected via direct debit
Potentially Lower Interest Rates – Save money by securing rates from 6.9% APR instead of paying 18-29% on credit card debt
Fixed Repayment Schedule – Know exactly when you’ll be debt free with loan terms from 2-8 years, unlike credit cards where minimum payments could take decades
Improve Your Credit Score – Consistent monthly repayments on one new loan can boost your credit rating over time
No Collateral Required – Unsecured debt consolidation loans available up to £50,000 without risking your home or assets
How Debt Consolidation Works
Understanding how debt consolidation loans work is straightforward – it’s designed to replace complexity with simplicity in just four clear steps.
Step 1: Calculate Your Total Debt
List all your existing debts including credit cards, personal loans, overdrafts, and store cards. Add up exactly how much debt you owe across all accounts to determine your total loan amount needed.
Step 2: Apply for a Consolidation Loan
Complete one application for a debt consolidation loan that covers all your current debts. Most lenders offer eligibility checking that won’t affect your credit score, so you can see potential rates before committing.
Step 3: Pay Off Existing Creditors
Once approved, use your new loan to clear all existing business loans and credit card debts immediately. This leaves you with just one new credit agreement to manage instead of multiple accounts.
Step 4: Make One Monthly Payment
Repay your consolidation loan over 2-8 years with a single monthly payment collected automatically by direct debit. No more tracking multiple due dates or worrying about missing payments to different creditors.
Note: Many lenders offer soft credit checks during the initial application process, allowing you to check your eligibility without impacting your credit file.
What Makes Debt Consolidation Different?
Debt consolidation loans provide structure and predictability that other debt solutions simply can’t match.
Fixed Interest Rates – Unlike variable credit card rates that can increase without warning, consolidation loans offer fixed rate certainty for the entire loan term
Structured Repayment Plan – Clear timeline to become debt free, contrasting with credit cards where minimum payments can keep you in debt for decades
Professional Credit Management – Replace the stress of managing relationships with multiple creditors with one regulated lender following clear terms
This approach differs significantly from alternatives like balance transfer credit cards, which offer temporary promotional rates that eventually expire, often leaving you with higher rates than before. A debt consolidation loan provides long-term stability with no nasty surprises.
Loan Options & Rates
Choose the debt consolidation loan structure that matches your personal circumstances and financial goals.
Unsecured Personal Loans – Borrow £1,000-£50,000 with no collateral required, representative APR from 6.9%
Secured Debt Consolidation Loans – Lower interest rates available when secured against your home, but consider the additional risk
Flexible Terms – Repayment periods from 12 months to 8 years depending on loan amounts and your realistic budget
Eligibility Requirements: 18+, UK resident, regular paid employment, and preferably good credit history. However, options exist for those with poor credit or a low credit score, though interest rates may be higher.
Get Your Debt Consolidation Quote Today
Take control of your finances with a debt consolidation loan that puts you on the path to being debt free.
Check Your Rate in 60 Seconds: No Impact on Your Credit Score
Apply online with confidence. Compare rates from FCA regulated lenders with no hidden fees or early repayment charges.
100% Secure Application: Free Eligibility Check and Expert Debt Advice Available
Don’t let multiple debts control your life any longer. Whether you need to consolidate credit card debt, existing loans, or other debts, find out how much you could save with one monthly repayment. If debt consolidation isn’t right for your situation, we’ll direct you to free debt advice services that can help you explore other options.
Ready to simplify your finances? Check your eligibility now and take the first step toward financial freedom.
What We Do
Tailored commercial finance, supporting the growth of your business.
We help UK businesses access fast, flexible funding through a range of solutions including Business Loans, Equipment Finance, Invoice Finance and Vehicle Finance.
Equipment Finance
If you are ooking to make new equipment or machinery purchases but don't want to damage your cash position then equipment finance is for you. Purchase the equipment your business needs and spread the repayments over a flexible term.
Business Loans
Get a cash injection for your business and use the funds for any business related purpose, like PAYE, VAT or even corporation tax. You can spread your repayments over 1 - 6 years and if you settle your loan early, the remaining interest is wiped.
Vehicle Finance
Purchase new or used commercial vehicles on finance with The Business Finance Group. Get rates cheaper than the dealership and have your finance approved within 24 hours.
Debt Consolidation
Consolidate your finance agreements into one, making your monthly repayments easier to manage whilst achieving a better interest rate.
Invoice Finance
Are unpaid invoices damaging your cash position? Invoice finance can not only improve your cash position but take the stress away from running your business. Especially if your customers are on 60/90 day payment terms.
Asset Finance
Looking to invest in business-critical assets without draining your cash reserves? Asset finance lets you acquire vehicles, equipment or technology by spreading the cost over time, whether you’re expanding your fleet, upgrading IT systems or investing in machinery.
Apply Online to Get Your Debt Consolidation Loan Today
Stop waiting for the perfect moment, secure the funding your business needs now with our risk-free application process.
No impact on credit score to check rates. Free to apply. No obligation quote.
FCA Regulated | Trusted by Thousands of UK Businesses | Secure Application Process
100% Secure Application: Free Eligibility Check and Expert Debt Advice Available
Prefer to speak with someone? Call our business finance experts today
Frequently asked questions
Can I get a debt consolidation loan with bad credit?
Yes, you can still qualify for a debt consolidation loan even with bad credit, though the terms and interest rates may differ from those offered to borrowers with stronger credit profiles. Many specialist lenders in the UK work exclusively with customers who have low credit scores, County Court Judgments (CCJs), or previous payment issues. The key is that they assess your current affordability and ability to make consistent repayments, not just your past mistakes.
While interest rates may be higher, consolidating several high‑interest debts into one structured loan can still reduce your overall monthly payments and simplify your finances. For example, replacing multiple credit cards charging 25–30% APR with a single fixed‑rate consolidation loan around 15–20% APR could still save you money over time.
Before applying, it’s sensible to check your eligibility using a soft‑search tool that won’t affect your credit score. At The Business Finance Group, we can help match you with lenders most likely to approve your application based on your unique financial circumstances. Even if you’ve been declined elsewhere, we’ll review all available options and explain the costs and benefits clearly before you commit.
Will consolidating debt affect my credit score?
Yes, but usually in a positive way over time. Initially, applying for a new loan triggers a credit search, which may cause a small and temporary dip in your score. However, once your new loan is in place and your previous debts are paid off, you’ll have fewer active accounts and a simpler repayment structure, which often leads to an improvement in your credit rating.
Here’s how consolidation can help long‑term:
Making one on‑time payment each month shows lenders you can manage credit responsibly.
Lower credit utilisation (especially if you clear maxed‑out credit cards) boosts your score.
Fewer active accounts mean reduced risk in the eyes of lenders and future creditors.
To maximise these benefits, avoid taking on new credit until your consolidation loan is well‑established, and always make repayments on time. Over 6–12 months, consistent repayment history and reduced balances can make a significant difference to your credit file.
In short, debt consolidation may cause a small short‑term dip, but if managed properly, it’s one of the most effective ways to repair and strengthen your credit score in the long term.
How much can I borrow for debt consolidation?
Most lenders offer debt consolidation loans ranging from £1,000 up to £50,000 for unsecured borrowing. The exact amount you can borrow depends on several factors, including your income, monthly outgoings, existing debts, and credit history. Lenders also consider your debt‑to‑income ratio to ensure that your new loan is affordable and sustainable.
If you own property, you may qualify for a secured debt consolidation loan, which allows for higher borrowing limits and lower interest rates since the loan is backed by your home. However, this also increases risk, as missed payments could put your property at risk.
Before applying, it’s a good idea to:
List all your current debts and balances.
Include credit cards, loans, store cards, and overdrafts.
Add a small buffer to cover fees or accrued interest.
At The Business Finance Group, our experts can help you calculate exactly how much to borrow and identify which loan type, secured or unsecured, best suits your financial goals. Our loan calculator can also give you an instant estimate of your potential monthly payment and total repayment amount.
What debts can I consolidate?
You can typically consolidate most unsecured debts into a single debt consolidation loan. This includes:
Credit cards (including store or catalogue cards)
Personal loans
Payday loans
Overdraft balances
Medical or dental financing
Certain types of household arrears or utility debts (in limited cases)
However, secured debts such as mortgages, hire purchase agreements, or car finance contracts generally cannot be included unless you refinance them separately. The goal of consolidation is to combine your unsecured borrowing into one predictable monthly payment, ideally with a lower interest rate.
A consolidation loan can also simplify how you manage your money. Instead of paying multiple lenders with varying due dates, you’ll have one payment, one fixed interest rate, and one end date.
If you’re unsure whether specific debts qualify, our advisors at The Business Finance Group can review your accounts and guide you toward the most efficient and compliant way to consolidate. We’ll help you prioritise which balances to include for maximum impact on both your cash flow and your credit score.
Should I consolidate all my debts?
Not necessarily, while debt consolidation is often a smart move, it’s not always the best choice for every situation. If you currently have some debts with very low interest rates, such as 0% balance transfer cards or promotional finance deals, it might make sense to leave those as they are until the promotional period ends. Consolidation works best when it reduces your total cost of borrowing and simplifies your repayments.
Here’s when consolidation makes sense:
You’re paying high interest on multiple credit cards or short‑term loans.
You want to reduce stress by having one fixed monthly payment.
You want a clear repayment term that ensures you’ll be debt‑free by a specific date.
You want to improve your credit score by reducing credit utilisation.
However, if your financial situation is already stretched and you’re struggling to make payments, taking on new credit may not be appropriate. In that case, free support from organisations such as StepChange, Citizens Advice, or National Debtline may be more suitable. These services can help you explore other solutions like Debt Management Plans (DMPs) or Individual Voluntary Arrangements (IVAs).
At The Business Finance Group, we take a transparent approach. If we believe debt consolidation isn’t the right solution for you, we’ll always direct you toward reputable and free debt advice services. Our goal is to help you achieve long‑term financial stability, not just a quick fix.
What if I can’t afford my current payments?
If you’re finding it difficult to keep up with your current debt repayments, it’s important to take action early rather than letting the situation spiral. Falling behind on payments can lead to additional interest, penalty charges, and damage to your credit score, but there are several practical solutions available depending on your circumstances.
A debt consolidation loan might be one option, as it allows you to replace multiple payments with a single, lower monthly instalment. However, this approach only works if you can still afford the consolidated repayment. The goal is to simplify your finances, not take on more borrowing that could worsen your situation. If your income doesn’t comfortably cover essentials after debt repayments, there are better alternatives.
In these cases, it’s crucial to seek independent, free debt advice before taking on new credit. Reputable organisations such as StepChange Debt Charity, Citizens Advice, and National Debtline offer confidential support and can help you explore other solutions like:
Debt Management Plans (DMPs): These allow you to make one affordable monthly payment through an approved debt management company, who distribute the funds to your creditors.
Individual Voluntary Arrangements (IVAs): A legally binding agreement where you repay an agreed portion of your debt over 5–6 years, after which the remainder may be written off.
Debt Relief Orders (DROs): For individuals with very low income and minimal assets, offering debt relief after a 12‑month period.
If you’re already struggling to cover household costs, consolidating may not solve the root issue, but speaking with a qualified debt advisor can help you regain control.
At The Business Finance Group, we believe in responsible lending and financial transparency. If we assess that a consolidation loan isn’t the most suitable option for your situation, we’ll refer you to free, FCA‑approved debt charities who can help you build a realistic repayment plan. The aim is to help you achieve long‑term financial stability and peace of mind, not just short‑term relief.
Facts & Figures
Over 3,000 SME’s Supported
For businesses throughout the UK
We have access to the whole lending market.
Almost all of our customers get their application accepted.
About Us
Tailored Funding, to Support Business Growth
Our team have a passion for helping business owners thrive, grow and achieve their dreams. At The Business Finance Group we make the experience of obtaining finance stress-free, taking care of the whole application process so that you can do what you do best, run your business. Our finance solutions are designed to assist in the growth of your company, for both the short term and long term.
Finance On The Go
Getting Finance has never been easier.
What Our Clients Say
"The Business Finance Group have helped us for years, we would recommend them to anyone"
We work with a handpicked panel of the best funders in the UK.
