Tidy your finances with a debt consolidation loan

Free guide to managing debts

See how you can benefit from tidying up your finances.

Personal loans from Halifax offer a range of borrowing amounts and repayment terms.

How you can benefit from sorting out your money

Taking your debts and bringing them all together into one loan could be a great way of managing your money - nearly a quarter of all loans taken out in the UK are used to pay off existing debts*.

  • Reduced rates

    If you're paying higher interest rates on your borrowing than on the loan you plan to consolidate your debts to, you could reduce the overall amount you have to pay back.
  • One fixed monthly repayment

    Instead of trying to manage multiple repayments to credit cards, store cards, loans and overdrafts on different dates, you can tidy everything up into one affordable repayment. With a fixed rate your repayments will always stay the same. Remember, you may have to pay a settlement fee on your existing borrowing.
  • Reduce your repayments

    You could reduce your monthly repayments by increasing your loan term, although you may pay more interest overall.

We've pulled together a few tips that could help you on your way to clearing your debts.

Budget planner

The best place to start is to use a budget planner. This could help you better understand what's coming in and going out so you can see how much you can afford to pay off each month.

Try looking through your statements, bills and shopping receipts before you start, to get a more accurate picture of your spending habits.

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Don't borrow more than you need

The purpose of taking out a loan for consolidation is to replace your outstanding bills with a single fixed repayment each month.  Calculate exactly what you owe to your lenders - this is the amount you should borrow on your loan for debt consolidation.

If you take out more than you need, you'll end up adding to that debt - meaning you could end up taking longer to pay it off.

Do you have savings?

If you have savings, you could be better off using these instead of taking out a loan – the interest on a loan may be higher than the interest you earn on your savings.

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Manage your money

Use our budget planner to see where your money is going, and where you could cut back. Are you paying for a gym membership that you don't use? Do you need to cut back on eating out or nights out to save some pennies? Is that must have item really a must have? Once you've set yourself a budget, stick to it.

Need a loan to get back on track with your debts?

Personal loans from Halifax are available to existing customers and offer a range of borrowing amounts and repayment terms to suit your budget.

Use the loan calculator to find out if we've got loan quotes to suit you.

Find out more about personal loans between £7000 and £15000

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*Source: Personal Loans, Finance Intelligence, September 2010, Mintel, period January to December 2009.

Loan calculator

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Loan £7,000 to £15,000
Number of Monthly Repayments

Representative example

Loan amount Monthly repayment
£9,000 £221.87
Loan term (months) Number of repayments
48 48
   
Total amount repayable  
£10,649.76  
   
Representative APR  
8.8% APR  
Annual interest rate (fixed)  
8.85%  
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