Debt consolidation loans from 8.1% APR

Struggling with multiple repayments? Consolidate everything into one manageable monthly payment with rates from just 8.1% APR. Our quick eligibility checker won't affect your credit score, and you could start saving money right away.

  1. Combine debts into one low monthly payment

  2. Rates from just 8.1% APR

  3. Same-day funding to pay off existing debts

  4. Borrow £1,000 - £25,000

Representative Example:

Assumed borrowing of £7,500 over 36 months at 32.5% APR representative. Monthly cost of £312.15. Total amount repayable of £11,237.40. Interest rate of 27.0% p.a. (fixed) and total fees of £440.00. From 8.1% to 49.9% APR. £1,000-25,000 over 1-5 years available.

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Illustration showing debts being consolidated in the Zable app
Illustration showing debts being consolidated in the Zable app

Why choose Zable for your debt consolidation loan?

  1. Save money with lower rates

    Our debt consolidation loans start from just 8.1% APR. This could save you hundreds or thousands of pounds in interest charges, if you reduce the term of your existing debt.

  2. Simplify your finances

    Instead of juggling multiple payments with different due dates and interest rates, you'll have just one fixed monthly payment to manage. This makes budgeting easier and reduces the risk of missed payments.

  3. Get back in control

    Clear your existing debts right away with same-day funding, then focus on one manageable repayment plan. Remember if you reduce your monthly payments but extend the term, you could end up paying more over the lifetime of the new loan.

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How to consolidate your debts with Zable

  1. Apply for your loan

    Get approved for the amount you need to pay off your existing debts, usually within minutes.

  2. Pay off your debts

    We'll transfer funds directly to your bank account, typically within an hour, so you can clear your existing debts as soon as possible.

  3. Enjoy one simple payment

    Make one fixed monthly payment to Zable instead of multiple payments to different lenders.

Illustration showing characters around a debt consolidation loan quote
Illustration showing characters around a debt consolidation loan quote

What is a debt consolidation loan?

A debt consolidation loan is a type of loan that combines several existing debts into one single, new loan.

The core idea is to take out one large loan (the consolidation loan) and use the money from it to immediately pay off all your other smaller, existing debts, such as credit card balances, other personal loans, overdrafts, and store card balances.

Once the old debts are paid off, you only have one single debt left to manage: the new consolidation loan.

For information on loans more generally, check out our guide on how loans work.

How do debt consolidation loans work?

The process can be broken down into four simple stages: tallying up what you owe, securing the new loan, paying off your debts, and making repayments on your new loan. Let’s look at an example in action.

1. Work out what you owe

First, figure out the total amount you owe. For example, if you had the following debts, you would owe a total of £10,000. 

Debt type

Outstanding balance

Credit card A

£3,000

Credit card B

£2,500

Personal loan 

£2,500

Overdraft 

£1,500

Store Card

£500

TOTAL

£10,000

Remember, each debt would carry its own interest rates and terms, too.

2. Apply for a debt consolidation loan

Once you know what you owe, and therefore the size of the debt consolidation loan you’re after, you can get an initial quote with a loan eligibility checker. This way you're able to see what rate you might get and whether it's the most cost-effective way of paying off your debts, without affecting your credit score.

When you’re ready to proceed, you can apply for the debt consolidation loan. In this example, you’d be applying for a £10,000 loan. 

3. Pay off your debts 

Once your loan lands in your chosen bank account, you can pay off all of your other debts. 

4. Make repayments on your new loan 

Now you will only have one repayment to make each month - to your debt consolidation loan. It can be managed in one place and will carry one fixed interest rate. 

What can I use a debt consolidation loan for?

Credit Cards

Clear high-interest credit card balances that may be costing you.

Store Cards

Pay off expensive store cards and catalogue debts that often charge premium rates for the convenience of shopping with credit.

Personal Loans

Consolidate existing personal loans with higher rates into one lower-rate loan with better terms.

Overdrafts

Clear persistent overdraft charges and fees by paying off your overdraft debt once and for all.

Other Debts

Combine any unsecured debts into one manageable monthly payment with a clear end date.

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Can I get a debt consolidation loan with bad credit?

The short answer is yes, it is possible to get a loan to consolidate debt with poor credit.

At Zable, we know that a low score doesn't always reflect your current ability to manage money. While some traditional lenders might reject your application based on your credit score alone, we use Open Banking technology to see the full, real-time picture of your finances, including your income, outgoings, and spending habits.

However, debt consolidation loans for low credit customers may carry a higher interest rate (APR) than the lowest rates advertised. Always use our eligibility checker first to get a personalised quote with a soft search that does not affect your credit score.

Is a debt consolidation loan a good idea?

A debt consolidation loan can be an extremely effective way of simplifying your finances and potentially saving you money, but it may not be the right choice for everyone.

The decision really comes down to the interest rate you’re offered vs. the interest you already pay on your other debts, as well as the benefit you feel you gain by simplifying your finances. 

Here’s a balanced view of unsecured loans for debt consolidation to help you decide if it’s the right choice for your unique situation:

Benefits

  1. Streamlined payments

    One fixed, predictable monthly payment is easier to manage than juggling multiple different payment dates with different companies. It can also reduce the chance of missing a due date.

  2. Potential to save money

    If the new loan's APR is lower than the average rate of your current debts, you could save money. Example: You might be paying 29.9% on a credit card and 49.9% on a store card. A new loan at 8.1% APR could then greatly reduce how much you pay in interest.

  3. Fixed interest rate

    Your interest rate is locked in for the entire loan term, so your monthly payments won't suddenly change if the Bank of England raises interest rates. This can help provide some financial stability.

  4. Fixed repayment schedule

    Unlike minimum credit card payments, a debt consolidation loan has a set end date. You know the exact month and year you will be officially debt-free.

Considerations

  1. Temptation to spend more

    Having paid off your credit cards, you might be tempted to use them again and accumulate more debt. Remember, you are moving the debt, not getting rid of it.

  2. Total cost could be higher

    If the new interest rate is higher than your current debts, or if you choose a longer repayment term, the total amount of interest you pay could increase. Remember to compare the total cost of the consolidation loan against the total cost of your current debt when you get your initial quote.

  3. Potential fees on existing debts

    Some of your current debts, like certain older personal loans, may carry a small ‘early repayment fee’ if you pay them off early. You can check this in your original agreement.

Profile image of Chris Meurice

"A debt consolidation loan can be a great, responsible choice when you’re focused on becoming debt-free and the new loan makes your repayment schedule clearer and more affordable. Always use a no-obligation eligibility checker like ours to get a personalised quote first without affecting your credit score, and go from there to make an informed decision based on your unique situation."

Chris Meurice - 8 years with Zable

Things to consider before taking out a personal loan for debt consolidation

  1. Consider the cost

    Compare the total interest you will pay on the new debt consolidation loan with the total interest remaining on your current debts to check the new loan is a cost-effective solution.

  2. Check you can afford repayments

    As with any loan, check that you can comfortably afford the new fixed monthly repayment after covering all your essential living costs, like food, rent, and utilities.

  3. Check for fees

    Check your current debt agreements for any early repayment fees. You can then factor these into the overall cost of the debt consolidation loan.

  4. Unsecured vs. secured

    When choosing your loan, consider that an unsecured personal loan does not use your home or other assets as collateral, whereas a secured loan puts your asset at risk if you cannot pay. Zable debt consolidation loans are unsecured.

Debt consolidation loan FAQs

Still got questions? Let's see if we can help.

Savings depend on your current interest rates and the rate we can offer you. You could save hundreds per month and thousands overall, if we can offer you a better rate than your existing lender(s).

Paying off multiple debts can improve your credit utilisation ratio, which may positively impact your credit score. Making consistent payments on your consolidation loan will also help build positive payment history, especially if it helps you avoid missed or late payments for existing balances.

You can borrow up to £25,000, subject to affordability checks. We'll assess your income and expenditure to ensure the loan is manageable for your circumstances.

It's generally recommended to close store cards and any cards with annual fees. For older credit cards, you might keep them open (but unused) as they can help your credit score through length of credit history and unutilised credit.

No, our initial eligibility check uses a soft search that won't impact your credit score. Only when you accept the quote and proceed with a full application will a hard search be conducted.

Most customers receive funds within an hour of approval, allowing them to clear existing debts the same day, but this depends on your individual arrangements with your existing lenders.

Ready to consolidate your debts?

Join thousands who've simplified their finances and started saving money with Zable debt consolidation. Check how much you could save with no impact on your credit score.

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