Available across the UK
Debt Consolidation
Debt consolidation means taking out new credit — such as a personal loan or balance transfer card — to pay off several existing debts, leaving you with one repayment. It is a form of borrowing, not a debt solution that reduces what you owe.
How it works
- A lender assesses your application, including a credit check and affordability review.
- If approved, the new credit is used to repay existing debts.
- You then repay the new lender over an agreed term.
Things to consider
- Approval is not guaranteed and depends on your credit history and affordability.
- A lower monthly payment over a longer term can mean you pay more in total.
- Usually only suitable if you can comfortably afford the new repayments.
Risks and consequences
- Secured consolidation loans put your home at risk if you do not keep up repayments.
- Fees, interest and charges may increase the total cost of your debt.
- Freed-up credit cards can lead to further borrowing.
- If you are already struggling with essentials, more borrowing may make things worse — speak to a free adviser first.
This page is general information, not advice. Money Surgeon does not recommend specific solutions. Whether any option is suitable depends on your full circumstances — speak to a qualified adviser before making decisions.