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How to Find the Right Debt Consolidation Company

Finding the right debt consolidation company for your circumstances can be difficult. We offer advice on how to find the best consolidation company.
A computer screen with a search bar.

If you are looking to consolidate debt, a debt consolidation loan may be the right option for you.

Before you can find the right company that will offer you the best debt advice, you first need to decide whether a debt consolidation loan is right for you.

What should I look for in a debt consolidation company?

When looking for a debt consolidation loan provider, there are several key things you should look for:

01. The interest rate and annual percentage rate they are offering on the debt consolidation loan

The interest rate on a debt consolidation loan will vary from company to company, so you must compare debt consolidation loans to try and find one that works best for your situation.

The debt consolidation loan cost should equal less than the overall cost of repaying your debts the way you currently are. This depends on how much interest you are paying to each different lender and how much debt you have in total.

02. Good customer reviews and testimonials

When looking for the right debt consolidation loan provider we recommend you take a look at some reviews so that you can see how other people have been treated by the company.

Some common sites you can find debt consolidation loan company reviews include Google My Business, FEEFO, and Trust Pilot.

Here at Consolidation Express, we are proud to deliver excellent customer service. To see some feedback from our customers you can visit our TrustPilot or FEEFO page.

Primarily our customers use FEEFO to share their thoughts about their experiences with us. We are currently rated a 4.7/5* for our customer experience.

Read our FEEFO Reviews

*Consolidation Express Average FEEFO Rating as of May 2022.

03. Proof that they are regulated by an official regulator

It’s crucial to check that the company providing you with a debt consolidation loan has an official regulatory body that ensures they are providing lawful services and products.

Usually, you can see the regulatory body of a company that provides debt consolidation loans somewhere on their website – usually in the fine print on the bottom of each page. If you cannot find this information, the company is not a lender or broker that is officially registered so anything they offer you is illegal.

Consolidation Express is regulated by the Financial Conduct Authority. We are audited regularly to ensure that everything we do is fair, lawful and in the best interest of the customer.

04. Lower monthly payments

The main point of getting a debt consolidation loan is for a debtor to save money each month by combining their monthly debt repayments into a single monthly payment making it more affordable.

If combining multiple debts with a debt consolidation loan does not lower your monthly repayment amount, then it is most likely not the most suitable debt solution for you.

05. They offer the type of debt consolidation loan you are looking for

There are different types of debt consolidation loans available in the UK. You must compare debt consolidation loans to choose the one most suited to your current financial situation.

Debt consolidation loans can be split between a secured debt consolidation loan and an unsecured debt consolidation loan. The difference between these is that one is secured against your assets and the other is not.

Is it a good idea to consolidate your debts?

An illustration of a jigsaw being put together.

You may find it is a good idea to consolidate your debts with a debt consolidation loan if you are finding it difficult to make your monthly repayments on all of your existing debt.

Consolidating debts with a debt consolidation loan may also be a good idea if:

  • You have multiple outstanding debts to multiple creditors.
  • You are looking to pay off your existing loan early.
  • The interest rates on the existing debt you have are high, so it is hard to make up for previously missed payments.
  • You would rather have only one monthly repayment to make so that your debt is easier to manage.
  • You are looking for an opportunity to improve your credit rating.
Consolidate Your Debts

How do debt consolidation loans work?

A debt consolidation loan only works if the new loan amount is equal to or more than the sum of your existing debts.

If this is the case, then the borrower should use the new loan to pay off their existing debts. This would leave just one loan to pay back in monthly instalments, making finances easier to manage.

A final point to note is that a consolidation loan works best when the interest rate of the new loan means that you will save money in the long run.

What debts can I consolidate with a debt consolidation loan?

A variety of debts can be consolidated with a debt consolidation, such as:

  • Personal loans
  • Credit cards
  • Overdrafts
  • Payday loans
  • Store cards

Will a debt consolidation loan hurt my credit score?

A credit score and a big question mark.

Initially, a debt consolidation loan will harm your credit score as it will be visible on your credit history. However, you can use debt consolidation to improve your credit score over time if you meet the monthly loan repayments.

Paying off all your existing debts with one single loan should allow you to keep track of payments, making you more likely to make monthly payments on time. Not only will this save you from being charged high interest, it could also help you create a good credit rating from a previously low credit score.

Can I get a debt consolidation loan with poor credit?

You can get a debt consolidation loan with a poor credit history; but you may find it more difficult to be accepted than those with a good credit rating. This is because different lenders and brokers have different acceptance criteria for debt consolidation loans.

Here at Consolidation Express, credit score is just one of many factors that we look at when deciding if you should be approved for one of our debt consolidation loans. We consider all credit histories.

An image of a hand pressing an apply button on a mobile phone screen.

Get a debt consolidation loan with Consolidation Express

If you are experiencing financial difficulty as a result of debts then a consolidation loan may allow you to enjoy benefits like:

  • A chance to improve your credit rating.
  • Lower monthly repayments.
  • Fewer creditors to deal with.
  • Potentially lower interest depending on the annual percentage rate offered.
Consolidate Your Debts
An advisor pointing to a screen displaying Rep APR.

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.