Which debt consolidation loan
is best for you?

How much do you want to borrow?

£

For how long?

months

You would like to borrow £3,000 over 24 months

The table below has been updated, with the cheapest lending option at the top.  Please use the Visit Site buttons to apply, or re-enter loan information for another comparison.

It’s a sad fact of modern life that increasing numbers of us find ourselves in unmanageable debt. Many of us took out credit on the never never, from store cards to payday loans, from overdrafts to credit cards. Thankfully we’re not stuck with repaying our existing debts off at their current interest rates, and can save money by consolidating our debts with a loan. Debt consolidation loans are similar to personal loans, but rather than spending the money on a new car or home improvement the loan is used to repay existing debts.

How much could you save?

APR offered is a very personal matter – no two customers are the same to a bank, so while Representative APR figures are used they might not be the interest rate you are offered. Nevertheless in most cases you will be offered a substantially better rate with a debt consolidation loan than you are paying on your existing borrowing such as other loans, overdrafts, credit cards and payday lending. Halving your average APR will cut your annual cost of borrowing in two. Over the long term it’s likely to cut it even further too, as you can spend more repaying your balance rather than paying interest and hence be out of debt quicker.

Which loans should you consolidate?

There’s little point in consolidating already cheap forms of credit. Do not place credit with a lower interest rate into a debt consolidation loan as this will only increase the amount you are paying. Prioritise your debts by interest rate, and pay back those with the highest rate first. After getting your quote on a debt consolidation loan, calculate how much you need to pay off all loans that have a rate higher than the loan then take out a loan for this figure. It’s important to ensure you can afford the monthly repayments first though, as missing repayments can lead to further financial problems. You also need to be certain you can afford all the essentials and have a little left over each month for emergencies so you can avoid taking out more credit.

Can you borrow more?

Rules on what you can borrow for change between lender, but often if you have a genuine need to borrow more money than what is needed to repay your existing debts lenders will consider this. For instance if you need to buy a car to get to a new job, or need to fund retraining for a better career path, lenders will consider this a good reason to increase the loan beyond what is needed to repay your existing debt.

Is there a cheaper alternative?

Increasing numbers of personal loans are available for use in debt consolidation. In fact many of the loans listed here are personal loan products. These are often cheaper than dedicated debt consolidation loans, but not always. Another alternative to consider is a secured loan. These will usually be cheaper for homeowners who have a poor credit history, although they do add the risk of losing your home should you fail to keep up with repayments.

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Warning: Late repayment can cause you serious money problems. For help, go to moneyadviceservice.org.uk.

ProviderLoanRepayment: £3,000
over 24 months
Representative APRTermUser Reviews
MinMaxMinMax
Tesco Bank
£3,000
£25,000
£130.41
4.1%
12
Months
120
Months

Rated 4.4 / 5 by
by 62 users

Read Reviews

Representative Example:
Borrow £7,500 over 60 Months. Monthly repayment amount of £138.20, Representative APR 4.1%, Total amount payable £8,292.

Sainsbury's Bank
£1,000
£25,000
£130.41
4.1%
12
Months
60
Months

Rated 4.5 / 5 by
by 47 users

Read Reviews

Representative Example:
Annual Interest Rate (fixed) is 4.10% p.a., with a representative 4.1% APR based on borrowing £10,000 and repaying over 60 months with 60 monthly repayments. Monthly repayments of £184.28 with total amount repayable of £11,056.80.

M&S Bank
£1,000
£25,000
£130.41
4.1%
12
Months
60
Months

Rated 4.5 / 5 by
by 41 users

Read Reviews

Representative Example:
Loan amount £5,000, 36 Monthly payments of £150.67. Representative APR 5.5%. Total amount repayable £5,424.12.

Hitachi Personal Finance
£2,500
£25,000
£130.41
4.1%
24
Months
60
Months

Rated 4.6 / 5 by
by 41 users

Read Reviews

Representative Example:
Loan Amount £5000, Loan Period 36 Months, Monthly Payments £150.46, Interest Rate 5.4% APR Representative, Total Amount Payable £5416.56

Cahoot
£1,000
£20,000
£130.54
4.2%
12
Months
60
Months

Rated 4.5 / 5 by
by 34 users

Read Reviews

Representative Example:
Loan Amount £8000, Loan Period 36 Months, Monthly Payments £236.62, Interest Rate 4.2% APR Representative, Total Amount Payable £8518.32

Santander
£1,000
£20,000
£130.68
4.3%
12
Months
60
Months

Rated 4.5 / 5 by
by 39 users

Read Reviews

Representative Example:
4.3% APR Representative. Loan amount £10,000 for £185.32 per month over 60 months. Total amount repayable £11,119.20. Rate of interest per annum 4.3% fixed.

Barclays
£1,000
£35,000
£130.68
4.3%
24
Months
60
Months

Rated 4.5 / 5 by
by 37 users

Read Reviews

Representative Example:
Loan Amount £8000, Loan Period 60 Months, Monthly Payments £150.73, Interest Rate 4.9% APR Representative, Total Amount Payable £9043.69

AA
£1,000
£25,000
£130.68
4.3%
18
Months
60
Months

Rated 4.6 / 5 by
by 34 users

Read Reviews

Representative Example:
£7,500 over 60 months at a fixed interest rate of 4.3% per annum would result in a representative APR of 4.3% APR monthly repayments of £138.86 and a total amount payable of £8,331.60

Yorkshire Bank
£1,000
£25,000
£131.48
4.9%
12
Months
60
Months

Rated 4.6 / 5 by
by 35 users

Read Reviews

Representative Example:
On an assumed loan amount of £7500 over 60 months Rate of interest - 4.9% per annum (fixed). Total amount of credit - £7,500 Representative 4.9% APR. Total amount payable - £8,459.14 59 monthly repayments of £140.99 and a final payment of £140.73

Royal Bank of Scotland
£1,000
£25,000
£131.48
4.9%
12
Months
60
Months

Rated 4.6 / 5 by
by 39 users

Read Reviews

Representative Example:
Borrow £8,000.00 over 2 years Representative 4.9% APR Interest rate 4.90% p.a. (Fixed) will cost £350.22 per month Total amount payable: £8,405.28

Clydesdale Bank
£1,000
£25,000
£131.48
4.9%
12
Months
60
Months

Rated 4.6 / 5 by
by 39 users

Read Reviews

Representative Example:
On an assumed loan amount of £7500 over 60 months Rate of interest - 4.9% per annum (fixed). Total amount of credit - £7,500 Representative 4.9% APR. Total amount payable - £8,459.14 59 monthly repayments of £140.99 and a final payment of £140.73

Natwest
£1,000
£25,000
£133.50
6.4%
12
Months
60
Months

Rated 4.6 / 5 by
by 34 users

Read Reviews

Representative Example:
Borrowing £7,500.00 over 5 years at Representative 6.4% APR and Interest rate 6.40% p.a. (Fixed) will cost £145.76 per month, with a total amount payable of £8,745.60.

Post Office
£2,000
£25,000
£134.86
7.4%
12
Months
84
Months

Rated 4.4 / 5 by
by 39 users

Read Reviews

Representative Example:
Representative 7.4% APR Annual Percentage Rate of charge – this shows the overall cost of borrowing, taking into account the term, interest rate and other costs.. Based on a loan amount of £7,500 over 48 months at an interest rate of 7.2% p.a. (fixed). Monthly repayment £180.22. Total amount payable £8,650.56.

MoneyWay
£3,000
£15,000
£135.00
7.5%
12
Months
60
Months

Rated 3.9 / 5 by
by 51 users

Read Reviews

Representative Example:
You could borrow £7,000 over 36 months with 36 monthly repayments of £218.15. The total amount repayable will be £7,853.40 at 7.9% APR representative.

Whilst we make every effort to ensure that the information is up to date, you should always confirm the terms of the offer with the product provider.



5 most recent debt consolidation loan reviews

Review of Royal Bank of Scotland

I did a bit of homework and worked out how much I would need to consolidate most of my debts and then I got onto the RBS website and checked to see what a loan would be costing me to do this. It was obvious straight away that a loan with the sort of rates and repayments RBS were quoting was definitely going to be the right way for me to go about clearing these debts. I went straight ahead and applied for a loan before I lost the momentum. I had it all sorted and finalised within 48 hours and I am about to start the job of clearing those debts now. I'd advise this type of loan to anyone in a similar position because it really is the ideal way to sort out any worrying debts.

Review posted by Harry White, Cheshire

  • Customer Service
  • Flexibility
  • Ease Of Use
  • Value For Money

Review of Royal Bank of Scotland

Thank you very much indeed RBS for this excellent loan which is going to be used for some debt consolidation. I know some people might think getting a loan to pay off debts is just compounding the problem. But not if you can manage to get such an affordable loan like the one I have just got from RBS. The repayments on this loan are a fraction of what I am currently paying out each month with individual debts so for me it is the most sensible thing to do and fortunately for me RBS agreed. They have given me a very decent rate on this loan and followed it up with some sound advice about how to prioritise my debts and which ones I should be dealing with first. Thank you very much RBS for this loan and for the advice which is much appreciated.

Review posted by T. McDermott, Manchester

  • Customer Service
  • Flexibility
  • Ease Of Use
  • Value For Money

Review of Royal Bank of Scotland

I am not alone in having debts but my debts were keeping me awake at night and i knew that wasn't good long term for my health so I did the sensible thing and applied for this loan from RBS. They advertise their loans can be used for debt consolidation so I felt they would be sympathetic towards my reasons for needing the loan and they were. I even think I have got a much better rate because it is a debt consolidation loan so I really couldn't be happier with what RBS have done for me with regards to this loan and the very good advice they have given me also. It has renewed my trust in them as a responsible bank.

Review posted by Marion Nolan, Windsor

  • Customer Service
  • Flexibility
  • Ease Of Use
  • Value For Money

Review of Yorkshire Bank

I've been with Yorkshire bank for a number of years and so it was straight to them that I went when I decided to try and get a debt consolidation loan. It just seemed right to be going with my own bank for this sort of loan. Who better than Yorkshire bank will know what state my finances are in and what type of loan I will need to sort them out. Yorkshire bank have been a very reliable bank for me and if I'm going to be airing my dirty laundry regarding my debt problems I'd rather be doing it with Yorkshire Bank. So I am delighted I have managed to get a suitable loan and just want to say thank you to Yorkshire bank for their continued good service.

Review posted by Mike Parker, Ripon

  • Customer Service
  • Flexibility
  • Ease Of Use
  • Value For Money

Review of Yorkshire Bank

When I couldn't get a suitable type of loan from my own bank to help me consolidate some debts that were building up I went onto the internet to use the loan comparison websites that everyone talks about. I am glad I did because apart from the fact that they have made this whole process so much easier for me, they have also highlighted a number of banks and lenders that I would otherwise not have considered. I have finally ended up with a very good loan from Yorkshire Bank who may well have been at the very bottom of my list if I had tried to recall all the banks from memory. So I'd like to thank the Readies loan comparison website for helping me to find this excellent debt consolidation loan and, of course, a big thank you to Yorkshire bank also.

Review posted by S.W. Taylor, Chesterfield

  • Customer Service
  • Flexibility
  • Ease Of Use
  • Value For Money


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