Best Debt Consolidation Loans UK 2026
Replace multiple debts with one fixed monthly payment
UK debt consolidation loans allow you to merge credit card balances, store card debt, and other loans into a single fixed-rate personal loan. The average UK household carrying revolving debt pays 22%+ on credit cards — consolidating at 7-15% can save thousands.
Avg APR
7% – 18%
Loan Amount
£3,000 – £25,000
Term
24 – 60 months
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Top UK Lenders for Debt Consolidation Loans
Barclays
Existing Barclays customersRepresentative APR
6.5% APR representative
Loan Range
£1,000 – £50,000
Min Credit
Good
Funding
Same day
Nationwide
Members with savings accountsRepresentative APR
6.9% APR representative
Loan Range
£1,000 – £25,000
Min Credit
Good
Funding
1–2 days
Sainsbury's Bank
Nectar card holdersRepresentative APR
6.9% APR representative
Loan Range
£1,000 – £40,000
Min Credit
Good
Funding
1–3 days
M&S Bank
M&S credit card customersRepresentative APR
6.9% APR representative
Loan Range
£1,000 – £25,000
Min Credit
Good
Funding
1–2 days
TSB
Fair credit applicantsRepresentative APR
6.9% APR representative
Loan Range
£1,000 – £25,000
Min Credit
Fair
Funding
1–3 days
Representative APR shown. 51% of successful applicants receive this rate or better. Your rate may differ based on your credit profile.
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Pros
- One monthly payment vs. multiple creditors
- Fixed APR — know exactly what you owe
- Can reduce monthly outgoings significantly
- Improves credit utilisation ratio
Cons
- May extend repayment period vs. aggressive debt payoff
- Origination fees on some lenders
- Requires decent credit score for best rates
- Does not solve overspending habits
Key Facts
Frequently Asked Questions
Will a debt consolidation loan affect my credit score in the UK?
A hard search will appear on your file, reducing your score by a few points initially. Long-term, reducing credit utilisation improves your score.
What is a representative APR?
The APR offered to at least 51% of successful applicants. Your actual rate may be higher or lower based on your credit profile.
Should I consolidate store card debt?
Yes — store card APRs in the UK average 35-40%, making them a prime target for consolidation at standard loan rates.
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