Debt Consolidation Calculator
Calculate your monthly repayments and potential savings by consolidating multiple debts into a single loan. Compare interest rates and clear your debt faster.
Debt & Loan Details
Enter your current debt overview and proposed loan terms to calculate your savings
The total amount you currently owe across all debts.
The sum of all minimum monthly payments you are currently making.
The weighted average APR of your current credit cards and loans.
The amount you plan to borrow to clear your existing debts.
The representative APR offered on your new consolidation loan.
The duration of the loan (e.g., 60 months = 5 years).
Enter 0 if none. Otherwise, the percentage fee added to the loan.
Consolidation Estimates
Projected monthly repayments and interest savings
Enter your current debt and proposed loan details above, then click Calculate Savings to see your new monthly payment.
UK Debt Interest Benchmarks
Understanding average interest rates helps you evaluate whether a consolidation loan will actually save you money compared to your current debts.
| Debt Type | Average UK APR | Context / Details |
|---|---|---|
| Personal Loan (Good Credit) | 6% – 10% | Fixed rate, fixed term. Ideal for consolidation. |
| Credit Card (Standard) | 18% – 25% | Variable rate. High interest if only paying minimums. |
| Store Card | 30% – 40% | Often deferred interest, but extremely high standard APR. |
| Bank Overdraft | 20% – 40% | Unarranged overdrafts can exceed 40% EAR. |
| Payday Loan | 400% – 1000%+ | Capped at £24 per £100 borrowed, but still extremely costly. |
Debt Consolidation FAQ
Everything you need to know about consolidating debt in the UK, improving your credit score, and managing repayments.
Debt consolidation is the process of combining multiple high-interest debts (such as credit cards, store cards, and overdrafts) into a single, lower-interest personal loan. This simplifies your finances by giving you just one monthly repayment, and if the new loan has a lower interest rate, it can save you money on interest and help you clear your debt faster.
Initially, applying for a consolidation loan will result in a ‘hard search’ on your credit file, which may cause a small, temporary dip in your score. However, over time, consolidating can improve your credit score by lowering your credit utilisation ratio and establishing a history of consistent, on-time monthly payments.
Most standard personal loans used for debt consolidation in the UK do not have arrangement or origination fees. However, some lenders may charge a fee for setting up the loan, or you might face early repayment charges (ERCs) if you pay off the loan before the agreed term ends. Always check the representative APR and terms carefully.
It depends on the size of your debt and how long you need to repay it. A 0% balance transfer credit card is ideal for smaller debts that you can clear within 12 to 24 months. However, if you have a larger debt (e.g., over £10,000) or need a longer repayment period (3 to 7 years), a fixed-rate consolidation loan is usually more suitable and provides predictable monthly payments.
Missing a payment on a consolidation loan can result in late payment fees, an increase in your interest rate, and a significant negative mark on your credit file, which can stay there for up to six years. If you struggle to make a payment, contact your lender immediately; they are regulated by the FCA and must offer forbearance and support.