Debt Consolidation Loans for Bad Credit UK – Top 10 Loan Providers

Debt consolidation loans for bad credit UK borrowers can use allow several existing debts to be replaced with one new loan and one monthly repayment.

Getting approved with poor credit is possible, but the interest rate may be considerably higher and some applicants may only qualify for secured borrowing.

Debt consolidation only makes financial sense when the new arrangement is affordable and the overall cost, including interest and fees, compares favourably with keeping the existing debts.

Debt consolidation does not remove debt. It replaces existing borrowing with new borrowing.

Homeowners considering a secured loan should understand that their property could be at risk if repayments are not maintained.

This page may contain referral or affiliate links. A commission may be earned if someone applies through an eligible link.

This should not change the information provided or the factors readers should compare before borrowing.

What Is A Debt Consolidation Loan For Bad Credit?

A debt consolidation loan is a new loan used to repay several existing debts.

Someone could, for example, have:

• £2,000 On One Credit Card
• £1,500 On Another Credit Card
• £1,000 In An Overdraft
• £1,500 Remaining On A Personal Loan

Instead of managing four different repayments, a £6,000 consolidation loan could potentially clear them and leave one monthly payment.

The key word is potentially. A lower monthly repayment does not automatically mean a cheaper loan. Extending borrowing over a much longer period can increase the total interest paid.

What Counts As Bad Credit In The UK?

There is no single UK credit score below which every lender automatically considers someone to have bad credit.

Different lenders use their own affordability assessments and lending criteria.

Factors that can make obtaining mainstream credit harder include:

• Missed Or Late Payments
• Loan Or Credit Card Defaults
• County Court Judgments
• High Credit Utilisation
• Numerous Recent Credit Applications
• Previous Financial Difficulty
• A Very Limited Or Thin Credit History
• Previous Insolvency Problems

An IVA is more serious than simply having a low credit score because it is a formal insolvency arrangement. Borrowing during an active IVA can also be restricted.

A lower credit score generally means applicants have fewer products available and can face higher interest rates.

Top 10 Debt Consolidation Loan Providers For Bad Credit UK Borrowers

There is no lender that can guarantee approval for people with poor credit. Applications are normally assessed using factors such as income, existing borrowing, repayment history and overall affordability.

The following options include both direct lenders and credit brokers operating in the UK.

Some focus on unsecured personal loans, while others specialise in secured homeowner borrowing that may be available to applicants with more complicated credit histories.

1. 118 118 Money

118 118 Money is a direct lender offering unsecured personal loans that can be used to consolidate eligible debts such as credit cards, store cards, overdrafts and other loans.

Borrowing currently ranges from £1,000 to £8,000, with repayment periods from 12 to 60 months.

Applicants can initially check their eligibility without affecting their credit score, which can be useful for someone trying to avoid unnecessary hard searches.

Its representative APR is considerably higher than rates generally offered to borrowers with excellent credit. That makes comparing the total amount repayable particularly important.

A consolidation loan may make several debts easier to manage, but taking a longer repayment term can result in more interest being paid overall even when the monthly payment falls.

Best Suited To: Applicants looking for a smaller unsecured consolidation loan who may struggle to qualify for the cheapest mainstream personal loans.

Key Consideration: Compare the total repayment against the balances and interest costs of the debts being replaced.

2. Lendable

Lendable provides unsecured personal loans that can be used for debt consolidation, with borrowing currently available up to £25,000.

Its eligibility process begins with a soft credit search, allowing applicants to see whether they may qualify before proceeding with a full application. This can be particularly useful for borrowers who already have a weaker credit profile and want to minimise additional hard searches.

Lendable considers customers across different credit bands, although an applicant with poorer credit is likely to receive a higher interest rate than someone with a stronger financial history.

If approved, the loan can be used to clear existing eligible debts so that the borrower is left with one fixed monthly repayment.

Best Suited To: Borrowers looking for a larger unsecured consolidation loan without securing borrowing against their home.

Key Consideration: Check whether any loan fee and the interest charged make the new borrowing genuinely cheaper overall.

3. Oakbrook Loans

Oakbrook Loans is an unsecured personal loan provider that can consider applicants who do not have a perfect credit history, subject to its affordability and eligibility requirements.

Debt consolidation is one of the purposes for which its loans may be used. Depending on the circumstances, existing qualifying debts can be settled as part of the consolidation process rather than the borrower simply treating the new loan as additional available money.

This can help create a clearer separation between the debts being replaced and the new repayment agreement.

As with other specialist lending, an applicant’s final interest rate will depend on their circumstances rather than simply whether they meet a basic eligibility threshold.

Best Suited To: Borrowers with an established UK credit history who want to consolidate debts without securing the new loan against property.

Key Consideration: Approval with imperfect credit does not automatically mean the loan is affordable or cheaper than the existing debts.

4. Bamboo Loans

Bamboo is a UK direct lender offering unsecured personal loans. It has traditionally served borrowers who may not meet the lending criteria used by some major banks, although every application remains subject to credit and affordability checks.

A personal loan may potentially be used to bring several eligible debts together under one repayment agreement, giving the borrower a clearer monthly payment and repayment date.

Because Bamboo provides unsecured borrowing, homeowners do not have to put their property forward as security simply to apply for one of its personal loans.

Anyone considering the lender can look more closely at its lending approach, eligibility and loan features in the Bamboo Loans review.

Best Suited To: Borrowers comparing specialist unsecured personal loans after finding mainstream lending difficult to obtain.

Key Consideration: Look at the actual APR offered after eligibility checks rather than assuming the advertised or representative rate will apply.

5. Everyday Loans

Everyday Loans specialises in unsecured personal lending and has historically focused on customers who may have difficulty being accepted by mainstream high-street lenders.

Rather than considering the credit score in isolation, an affordability assessment can also take account of factors such as income, expenditure and the applicant’s ability to maintain repayments.

Debt consolidation can be one use for the loan, potentially allowing credit cards, overdrafts or other eligible borrowing to be replaced with one fixed repayment.

However, specialist bad-credit borrowing can carry relatively high interest rates. Someone consolidating debt should therefore calculate whether the convenience of one repayment is worth the total borrowing cost.

Best Suited To: Applicants with weaker credit histories who still want an unsecured loan rather than putting their home at risk.

Key Consideration: A lower monthly payment can still cost more overall if the repayment period becomes substantially longer.

6. Evolution Money

Evolution Money specialises in secured loans aimed at UK homeowners and includes debt consolidation among the purposes for which its borrowing can be used.

It currently advertises loans from £5,000 to £105,000, with repayment periods between three and 20 years. The higher borrowing limits can make secured lending more relevant where someone has a substantial amount of debt that would be difficult to consolidate using a smaller unsecured personal loan.

Applicants can initially check eligibility without affecting their credit score.

Because the loan is secured against property, the consequences of failing to maintain repayments are significantly more serious than with unsecured borrowing.

Homeowners considering this route should understand how secured loans for bad credit work before converting unsecured credit-card or personal-loan debts into borrowing secured against their home.

Best Suited To: Homeowners with larger consolidation requirements who may have difficulty obtaining sufficient unsecured borrowing because of their credit history.

Key Consideration: Extending debt over 10, 15 or 20 years can considerably increase the total interest paid, and the property used as security is at risk if repayments are not maintained.

7. Ocean Finance

Ocean Finance operates as a credit broker rather than a direct lender. This means it can search products from lenders rather than issuing every loan itself.

Its loan services include personal loans, bad-credit borrowing and secured homeowner loans, which means there may be different consolidation routes depending on the amount required and the applicant’s circumstances.

Using a broker can be useful where a borrower does not know which specialist lender is most likely to consider their application. However, it remains important to check exactly which lender is ultimately offering the credit and what fees or charges apply.

For homeowners, secured borrowing may provide access to larger amounts, but it also introduces the risk of securing previously unsecured debts against property.

Best Suited To: Borrowers who want a broker to search different lending options instead of individually approaching several lenders.

Key Consideration: Check whether the final product is secured or unsecured and review any lender or broker charges before proceeding.

8. Norton Finance

Norton Finance is an FCA-regulated credit broker that can help borrowers compare both secured and unsecured consolidation products from a panel of lenders.

This can make it particularly relevant to people with more complicated financial circumstances, including homeowners who need to consolidate a larger amount than a standard unsecured personal loan is likely to cover.

The company does not simply operate as one lender offering one set of criteria. Instead, the available option will depend on which lender on its panel considers the applicant’s circumstances suitable.

That can broaden the potential choice for borrowers with adverse credit, but it also means rates, terms and fees can vary substantially between offers.

Best Suited To: Applicants who want access to several potential lenders, particularly homeowners comparing specialist secured borrowing.

Key Consideration: Review both broker fees and lender charges and compare the total amount repayable rather than concentrating only on the monthly instalment.

9. Fluent Money

Fluent Money is a credit broker with a strong focus on secured homeowner borrowing, including loans that may be used for debt consolidation.

Its panel-based approach means applicants may be matched with different lenders depending on factors such as property equity, borrowing requirements, credit history and affordability.

Secured debt consolidation can sometimes reduce the immediate monthly repayment because the borrowing is spread over a longer period. However, lowering the monthly cost in this way can substantially increase the total interest paid.

Someone consolidating credit cards or unsecured loans should be especially careful before turning those debts into borrowing secured against their home.

Best Suited To: Homeowners with larger outstanding balances who want a broker to compare specialist secured lenders.

Key Consideration: Do not judge affordability solely by the new monthly payment. Compare the full repayment cost over the entire loan term.

10. Loans Warehouse

Loans Warehouse is an FCA-regulated credit broker offering access to both personal loans and secured homeowner borrowing from its lending panel.

Its secured-loan service can include options for applicants with adverse credit histories, including previous missed payments, arrears or CCJs.

Having one of these entries on a credit file does not guarantee acceptance or rejection because lenders still assess affordability and the wider financial circumstances.

A broker can potentially reduce the need for a borrower to approach several lenders individually, although applicants should still understand which company is ultimately providing the credit.

For homeowners, larger secured loans may be available than unsecured personal loans, but this needs to be weighed against the additional property risk.

Best Suited To: Borrowers wanting specialist loan comparisons before making applications directly to individual lenders.

Key Consideration: Check the interest rate, total repayment, term, broker fees, lender fees and whether the borrowing is secured against property before accepting an offer.

How Do Debt Consolidation Loans Work?

The process normally involves five stages:

1. Add Up Existing Debts: Work out the balances that need to be cleared.
2. Compare Consolidation Options: Compare unsecured personal loans, secured loans and other alternatives.
3. Check Eligibility First: Use soft-search eligibility tools where available before submitting a full application.
4. Use The New Loan To Clear Existing Debts: Depending on the lender, funds may be paid to the borrower or directly towards existing creditors.
5. Repay The New Loan: The borrower then has one repayment under the new agreement.

Consolidating debt should ideally reduce the cost or make repayment genuinely more manageable without creating a significantly larger overall bill.

Secured Vs Unsecured Debt Consolidation Loans

Feature	Unsecured Loan	Secured Loan
Security Required	No	Usually secured against property
Homeownership Required	No	Normally yes
Bad Credit Availability	Can be limited	Potentially wider
Typical Borrowing Amount	Usually lower	Can be considerably higher
Repayment Period	Usually shorter	Can extend for many years
Property At Risk	No	Yes
Main Risk	High APR with poor credit	Home could be repossessed

Applicants considering borrowing against their property can also review the differences involved in secured loans for bad credit before deciding whether converting unsecured debt into secured borrowing is appropriate.

The FCA warned in March 2026 that some second-charge mortgage firms had weaknesses in how debt consolidation suitability, affordability and customer outcomes were assessed.

What APR Can Someone With Bad Credit Expect?

There is no standard debt consolidation APR.

Rates depend on factors including:

• Credit History
• Income
• Existing Debt
• Affordability
• Loan Amount
• Loan Term
• Whether Borrowing Is Secured
• The Individual Lender’s Criteria

Poor-credit borrowing can be substantially more expensive than mainstream personal loans.

For example, imagine borrowing £6,000 over 36 months at an illustrative 24.9% annual rate.

The repayment would be approximately £238 per month, producing total repayments of roughly £8,577. That means around £2,577 would be added above the original £6,000 borrowed.

This example is illustrative rather than a current lender quotation. Actual APRs, fees and repayment calculations vary.

What Should Be Compared Before Applying?

Do not compare consolidation loans using the monthly payment alone.

Factor	Why It Matters
APR Or APRC	Shows the annual borrowing cost
Monthly Repayment	Must remain affordable
Total Repayable	Shows the true overall cost
Loan Term	Longer terms can increase interest
Arrangement Fees	Can substantially increase costs
Broker Fees	Particularly relevant to secured loans
Early Settlement Costs	Important if planning to repay early
Fixed Or Variable Rate	Determines whether payments may change
Secured Or Unsecured	Changes the level of risk
Eligibility Search	Soft searches can reduce unnecessary applications

Soft Searches Vs Hard Searches

A soft credit search can normally be used to estimate eligibility without affecting the applicant’s credit score.

A full application normally involves a hard credit search, which becomes visible on the credit report.

Submitting several applications over a short period can therefore be counterproductive.

Where possible:

• Check Eligibility First
• Compare Likely Rates
• Avoid Repeated Applications
• Apply Only When The Product Appears Suitable

This is particularly important for applicants who already have a damaged credit history.

Pros And Cons Of Debt Consolidation

Potential Advantages	Potential Disadvantages
One monthly payment	Does not eliminate debt
Easier budgeting	Poor credit can mean high interest
Possible lower interest cost	Longer terms can cost more overall
Clear repayment end date	Fees may reduce savings
Could reduce administration	Another credit application is required
May help avoid missed payments	Secured borrowing puts property at risk

Alternatives To Debt Consolidation Loans

Taking another loan is not the only option.

0% Balance Transfer Credit Card

Someone with a sufficiently strong credit profile may be able to transfer expensive credit-card debt to a promotional 0% balance-transfer deal.

The site’s guide to interest-free credit cards explains how introductory 0% periods work and why the balance should ideally be cleared before the promotional rate expires.

Balance-transfer fees can apply and the strongest offers may not be available with poor credit.

Speak Directly To Existing Creditors

Creditors may agree to reduced payments, longer repayment periods or temporary support when someone is experiencing genuine financial difficulty.

Debt Management Plan

A DMP can combine payments towards eligible non-priority debts without taking out another loan. It can affect a credit file and is not appropriate for every type of debt.

Guarantor Loan

Some borrowers consider guarantor borrowing, where another person agrees to become responsible for repayments if the borrower cannot pay.

This transfers significant financial risk to the guarantor and should be approached carefully.

Formal Debt Solutions

Depending on the severity of the situation, options can include an IVA, Debt Relief Order, bankruptcy or Scottish debt solutions.

These have serious financial and credit consequences and should normally be discussed with a qualified free debt adviser first.

What Should You Do If A Consolidation Loan Is Declined?

Do not immediately submit applications to several more lenders.

Instead:

• Check Your Credit Reports For Errors
• Find Out Why The Application May Have Failed
• Review Income And Existing Commitments
• Reduce Credit Utilisation Where Possible
• Avoid Multiple Hard Searches
• Consider Waiting Before Applying Again
• Speak To Existing Creditors
• Get Free Debt Advice If Repayments Are Already Unaffordable

MoneyHelper advises people who have been declined to consider the cause before making another application because repeated applications may make the situation harder.

Check That A Lender Or Broker Is Regulated

Before giving financial information or paying any fee, check that the company is properly authorised.

The FCA Firm Checker can confirm whether a financial business is authorised and whether it has permission to provide the relevant service.

Avoid companies promising:

• Guaranteed Approval
• Loans With No Affordability Checks
• Instant Credit Repair
• Government Debt Consolidation Loans
• Guaranteed Debt Write-Offs
• Large Upfront Payments Before Lending

Where Can You Get Free Debt Advice?

Anyone already missing payments or struggling to cover essential household costs should consider free debt advice before taking another loan.

Useful services include:

• StepChange: Free debt advice online or by calling 0800 138 1111.
• National Debtline: Free telephone and online debt advice. The current England and Wales number is 0808 808 4000.
• MoneyHelper: Its Debt Advice Locator helps people find free confidential debt advisers.
• Citizens Advice: Offers free guidance about debts, creditors and formal debt solutions.

Conclusion

Debt consolidation loans for bad credit UK borrowers may provide a practical way to replace several payments with one monthly repayment, but simplifying debt is not the same as reducing it.

The old approach of choosing a lender simply because it accepts weaker credit should be avoided. Compare the APR, total repayable amount, repayment term, fees and whether the loan is secured before making a decision.

UK borrowers now have a mixture of specialist direct lenders and regulated brokers to consider, including 118 118 Money, Lendable, Oakbrook Loans, Bamboo, Everyday Loans, Evolution Money, Ocean Finance, Norton Finance, Fluent Money and Loans Warehouse.

Where existing debts are already unaffordable, free debt advice may be safer than taking on additional borrowing.

Frequently Asked Questions

Can I Get A Debt Consolidation Loan With Bad Credit?

Yes, potentially. Specialist lenders and brokers may consider applicants with weaker credit histories, although interest rates are often higher and approval is never guaranteed.

Can I Get A Debt Consolidation Loan With A CCJ?

Possibly. Some specialist lenders consider applicants with previous CCJs. The age, value and status of the CCJ, alongside affordability and other credit information, can affect the decision.

Does Debt Consolidation Improve My Credit Score?

Not automatically. A new application can initially affect the credit file. Consistently making repayments on time may support a healthier credit history over time, while missed payments can cause further damage.

Can I Consolidate Credit Cards And Overdrafts?

Yes. Credit cards, overdrafts, store cards and existing personal loans are commonly included in debt consolidation where the new lender permits it.

Is A Secured Debt Consolidation Loan Easier To Get With Bad Credit?

It can provide more options because the property gives the lender security. However, approval is still subject to affordability and the consequences are greater because the home can be at risk if repayments are not maintained.

Are There Guaranteed Debt Consolidation Loans For Bad Credit?

No legitimate lender can responsibly guarantee approval before assessing an application. Be particularly cautious about businesses advertising guaranteed acceptance without affordability or credit checks.

Is Debt Consolidation Worth It?

It can be worthwhile when it makes debts easier to manage and reduces the overall cost. It may be a poor option when the interest rate is higher, expensive fees apply or the repayment period is extended so much that substantially more is repaid overall.