Debt consolidation loan
It might be difficult to imagine from where you are now, but taking control of your existing borrowing can be simple. By bringing it all together in one place with a debt consolidation loan, you could get on track to becoming debt-free.
What is a debt consolidation loan?
A debt consolidation loan is a personal loan that you can use to pay off other debts such as loans, credit or store cards you currently have.
3.5% APR representative on loans of £7,500-£25,000 over 1-5 years
With a Halifax debt consolidation loan, we could help you manage your finances with:
- one fixed monthly payment
- one firm date for when your borrowing will be paid off
- one fixed interest rate
If you refinance existing debts, you may pay a higher rate of interest or make repayments over a longer term with a debt consolidation loan. This means you may pay more interest overall.
1. Check your finances
- Have a look at your regular outgoings versus what’s coming in. This is key to making your debt easier to manage, as you’ll see what you can afford to pay back each month.
- Make changes. To start, which direct debits/standing orders do you need? Are you paying for anything you don’t need like a magazine subscription or gym membership?
- Check all your accounts. Do you have any money you can use to pay off some of your existing borrowing? Interest you pay on a loan is usually higher than interest you earn on savings.
2. Add up your borrowing
How much do you still need to pay off from your current borrowing and what interest or charges are you paying?
If you have any current borrowing where you do not pay interest, such as a 0% credit card, remember, if you move this into a loan you will pay interest. Decide which of your debts you want to bring together and add them up to give you the total you plan to move to a debt consolidation loan.
3. Move forward with a debt consolidation loan
Pop your borrowing total into our Personal Loan calculator and select how long you’d like to repay it over to give you an idea of what your monthly repayments could be.
Apply to get on the right track
It’s easy to apply to get on the right track with your borrowing today. The decision whether to offer you a loan, the amount we’ll lend you and the interest rate will all be based on an assessment of your individual circumstances. If you hold a Halifax current account, in most cases we’ll tell you how much you can borrow and if you’re likely to be approved when you get your quote. This won’t affect your credit score. Check out how it works for existing and new customers:
Our debt consolidation loan is just a personal loan you use to pay off other debts you currently have. These debts could be credit cards, store cards, overdrafts or other existing loans. You’ll then only have one monthly repayment at a fixed rate of interest rather than several different payments at different rates.
You can apply for a debt consolidation loan if:
- you’re aged 18 or over and live in the UK (excluding the Channel Islands and the Isle of Man)
- you’re in paid employment or have a regular income
- you’re not a full-time student
- you haven’t had a request for credit declined in the past month
- you don’t have a history of bad credit, such as bankruptcy or CCJs
- you’re not applying for any of these reasons
Yes. As our debt consolidation loans are personal loans, they are unsecured. This means that the loan isn’t linked to your home.
Lending and rate are subject to status. Available to UK residents aged 18+.
Loans are provided by Halifax. Halifax is a division of Bank of Scotland plc. Registered in Scotland No. SC327000. Registered Office: The Mound, Edinburgh EH1 1YZ.