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Am I Eligible for Debt Consolidation?

Debt consolidation is certainly an attractive option for getting on top of your debts. To find out if you qualify, take a look at this page.
An image of a piece of paper with a tick on it being marked with a stamp that says eligible.

If you have several creditors chasing you for payment, and the demands just keep piling up, it can certainly be a stressful experience. Fortunately, with a debt consolidation loan, you could pay off all your lenders and just focus on making one affordable monthly payment.

This is only one of the benefits however, other great reasons to consider getting a debt consolidation loan include:

  • You could have the funds you need within 24 hours;
  • Regardless of your credit history, all scores are considered during the application;
  • There are a variety of flexible rates available, starting from as little as 4.4% APR up to 49.9% APR.

If you’re sold on the idea, great! Complete our short application form below and we’ll be in touch with your options:

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Do I qualify for debt consolidation?

The good news is, unlike many debt solutions out there, you only need to qualify on a few points before being eligible for a consolidation loan. If you want an unsecured loan, you should ideally fulfil the following criteria:

  • You have a sustainable source of income to make the loan repayments;
  • After deductions, you can afford to make the loan repayments;
  • You’re a UK resident;
  • You have a reasonable credit rating.

What about secured debt consolidation?

The qualifying criteria is slightly different for secured debt consolidation. For one thing, a reasonable credit rating may not be required. However, to be eligible for this, you need a valuable asset to use as collateral, such as your home or car.

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How to qualify for debt consolidation

If you’re worried you don’t entirely meet the criteria for debt consolidation but think this loan would be perfect for you, then all is not lost. Initially, you should speak with one of our advisors and they’ll be able to identify whether debt consolidation is possible.

Chances are, as a broker, we should be able to identify a provider willing to help you.

If you are not currently eligible for debt consolidation, then our advisors can look at the reasons and specify what you could do to change that. Alternatively, they may be able to identify another more suitable solution.

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APRs from 5.8% to 89.9%

We are a broker, not a lender.

Unsecured Loan Representative 69.9% APR

Borrowing £7,500 over 36 months, repaying £502 per month, total repayable £18,083. Total cost of credit £10,583. Interest rate 69.9% (variable). The lenders on our panel offer loans for 12-60 months, with rates from 5.8% APR to 89.9% APR. The Representative Example is based on all loans paid out by lenders between 19th Apr 2022 and 23rd Dec 2022.

Secured Representative 11.7% APR

If you choose to add fees to the loan: Assumed borrowing of £25,000 over 120 months, plus a broker fee of £2,500 and a lender fee of £250 would result in monthly repayments of £345.55, the borrowing rate is 8.6% (variable), the APRC is 11.7% (variable), total charge for credit £16,466.00 and the total amount payable £41,466.00. You can opt to pay the lender and/or broker fees upfront, your adviser will discuss these options with you.

Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on a mortgage or any debt secured on it. All rates vary subject to loan amount, loan type and status. Repaying your debt over a longer period of time may increase the amount you pay.

Further reading

What are the Different Kinds of Unsecured Loans?

Understand what an unsecured loan is, and how best to use the different kinds of unsecured loans in 2023.

What are the Different Types of Secured Loans?

With so many different types of loans available, it can be difficult to know which is right for you. For more information on secured loans, read this expert article.

Persistent Debt – What Does it Mean for Your Credit?

Persistent debt can affect your credit rating for a significant time period. Read to find out more.