Looking to Consolidate Credit Card Debt?

A loan to pay off credit card debts. Loans from £5000 to £75,000.

If you’re struggling with credit card debt and think the chances of repaying it are slim, don’t worry – a consolidation loan might be just what you need. By using the money provided, you could shut down your credit cards and leave yourself making just 1 monthly payment.

You could benefit from:

  • Quick approval - with all credit histories considered!
  • Fewer creditors contacting you.
  • Finances that are easier to manage.
  • Fast loan pay-out straight to your bank account.
Do You Qualify?

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Consolidate Your Debts in 3 Easy Steps

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Start your journey with our quick and easy online application. Start now >

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Your application will be reviewed

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If approved, you should have the money between two and 48 hours

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Is it a good idea to consolidate credit card debt?

If you find a loan that ultimately leaves you paying off less in the long run, then consolidating credit card debt should be a good idea. It’s important, therefore, to review the terms and consolidations before committing and make sure:

  • Your monthly payments are affordable.
  • You will pay a lower interest rate on the loan than on your credit card debts.
  • The repayment period is not excessively long.

If your debt consolidation loan ticks those boxes, this solution should be just what you need. For more information though, take a look at our guide ‘when is debt consolidation worth it?’.

We’re actively trying to find you the best deal possible as we’re a broker, not a lender. It’s in our best interests, therefore, to locate a consolidation loan that gives you value for money. If we honestly think consolidating your credit card debt is a bad idea, we’ll let you know the reasons why.

Representative 12.9% APR

12.9%

APR (variable)

Representative Example: Borrowing £7,500 over 60 months, repaying £167.57 per month, total repayable £10,054.20.

Total cost of credit £2,554.20.

Interest rate 12.9% (variable).

The lenders on our panel offer loans for 12-120 months, with rates from 4.4% APR to 49.9% APR.

How does credit card consolidation work?

Credit card consolidation is where you use a loan to pay off all your lenders. For example, if you have credit cards with Natwest, Halifax, and American Express, a consolidation loan would cover everything you owe to these firms.

You would use the money to close these accounts one-by-one until you’ve cleared your credit card debt.

Instead of juggling repayments to these three lenders, you only have to focus on one. This would be the company that provided your consolidation loan.

Chances are, you’ll now be making smaller monthly repayments, dealing with better levels of interest, and a shorter repayment period.

Can I consolidate my credit card debt with a balance transfer card for bad credit?

Many people consider paying off their credit card debts using a bad credit balance transfer card.

A balance transfer card allows people to pay off multiple credit card debts by transferring the debt onto a new card with lower interest. This type of debt solution is primarily used for credit card debt consolidation.

A balance transfer may not be the most suitable debt solution for you if:

  • You have a poor credit score.
  • You are unlikely to be approved for a lower interest rate than the ones on the cards you currently have.
  • You have a variety of debts that need to be consolidated - not just credit card debt. (i.e. personal loans, payday loans, store cards).
  • You owe more than the average credit card balance.

In this case, you may find a debt consolidation loan is your best option to improve your financial situation.

Our expert advisors can advise you on if a debt consolidation loan or a balance transfer card for bad credit is right for you.

Consolidate Your Debts

What is bad credit?

"Bad Credit" is a term used to describe a credit score that is below a desirable number.

Bad credit is typically a result of multiple factors:

  • Missed or late payments to creditors.
  • "Default Notices" on a credit file.
  • A County Court Judgements (CCJ) is being issued on the credit file.
  • Paying less than the contractual payment owed.
  • Taking out too much credit at once.
  • Having no history of managing credit.

People who have bad credit typically find it difficult to be accepted for new lines of credit. That being said, our Debt Consolidation Loan acceptance criteria is designed to consider all credit histories. Here at Consolidation Express, we base our loan acceptance on many factors, not just a person’s credit report...

Is it worth taking out a credit card for bad credit to pay off credit card debt?

People often consider taking out another credit card for bad credit to repay their credit card debts. However, this is not always the best option for your finances.

Credit cards typically come with high-interest rates and charges than debt consolidation loans, especially for people who have a poor credit score. Hence, it is usually better for people’s financial future to take out a debt consolidation loan rather than another credit card.

Eligibility For Credit Card Debt Consolidation

  • You must have multiple unsecured debts that you are struggling to pay.
  • You must be able to afford to repay at least £75 per month.
  • You need to live in England, Wales, or Northern Ireland.
Eligibility Checker

Pros and cons of consolidating credit card debt

Like many other financial solutions, there are pros and cons to consolidating credit card debt:

Benefits

  • Fewer payments to make each month – simplifying your finances.
  • Borrowing at lower interest rates can save you money.
  • You can repay your debts sooner.
  • With only one lender to pay your finances are simpler to manage.
  • A chance for you to improve your credit score.

Considerations

  • Initially, a consolidation loan may harm your credit score.
  • A consolidation loan does not write off credit card debt, so you will need to repay the full amount that you owe.

Can I consolidate credit cards without hurting my credit rating?

Initially, taking out a consolidation loan will probably damage your credit score as you’re taking out another line of credit. However, as you close your accounts – shrinking your credit utilization ratio – and start making payments on time, your score should allow you to improve your credit score.

Why Choose Us?

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One affordable payment

Pay as little as £75 per month.

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Bad credit?

No problem. We consider all credit scores - even bad ones!

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Expert advice

We are experts in debt solutions.

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No upfront fees

No hidden upfront fees to worry about.

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It is fast

Get your money in as little as 2 hours.

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It is very fast

Our online application only takes minutes to fill out. Start now >

Credit Cards and Bad Credit FAQS

This is the total ratio of how much you owe divided by your credit limit. For example, if your credit limit was £10,000 and you owed £5,000, this ratio would be 50%. As a general guideline, it’s typically recommended to keep this figure at around the 30% mark.

According to statistics from The Money Charity, the average person in the UK would take more than 26 years to pay off their credit card debt – assuming they made the minimum repayments. Furthermore, this type of debt stands at around £2,600 per average household.

With so many people struggling to pay off what they owe – it’s only natural to look for a solution. After all, who wants to spend over a quarter of a century paying off debts?

You can use a credit card for debt consolidation, but this solution can be risky. For example, many card providers will use an introductory offer of 0% interest. However, if your debts aren’t paid back in time, this solution could become extremely expensive. Ultimately, this might leave you in worse financial shape than before.

If you’re transferring multiple accounts to one credit card, providers will also typically charge you a fee for doing so. This amount varies but, again, can be costly.

If you pay off your debts within the introductory period, a credit card could be a cost-effective solution. However, if you miss the interest-free window, you may wish you had chosen a debt consolidation loan instead.