Debt Consolidation Loans for Bad Credit

  • Loans of £1,000 – £250,000+
  • Bad Credit OK
  • Save £s & Simplify
  • Unsecured & Secured
  • Discover your Options
middle-aged couple wearing blue and white close together and smiling

What is Debt Consolidation?

Consolidating personal debt is about converting existing expensive debts into a single lower rate loan that is more affordable and saves you money overall. You can do this whether you have a good credit rating or a bad credit rating. The aim of minimising the cost of your debt is just good financial management. But you need to consider your options rather than jumping in headfirst.

People use the phrase “debt consolidation” as if it is some sort of magic pill. In fact you need to be very careful when looking to consolidate your debt especially if you are combining unsecured debts (e.g. credit cards, overdrafts, store cards, personal loans) with different repayment terms.

Consolidation will:

  • Bring together your various debts into a single loan
  • Make just one affordable monthly loan repayment
  • Reduce your total interest cost

Consolidate Now!

Debt Consolidation if you have Bad Credit

In principle, you can consolidate your debt regardless of your credit position. Whether you should consolidate or not is an important question – one that you may wish to discuss with a debt advisor.

Your aim with consolidation is to reduce your monthly outgoings to help your monthly budget. When planning this there are two key issues to keep in mind:

  • if reducing your monthly outgoings merely extends the overall duration of the loan you could end up repaying more overall than you might otherwise. Do you really want to do this?
  • if you are considering consolidating various unsecured debts with a secured loan you could be increasing your overall risk – you could be putting your asset at risk if you were to fail to keep up the repayments on the new loan. Do you really want to do this?

Should I consolidate my debts?

If you are seeking to reduce your debt repayments to ensure they fit within your monthly budget then consolidation is something you should consider. If your debt burden isn’t growing and you are controlling your household budget then consolidation is a serious option.

However, if your budget just won’t stretch and you’re adding to your credit card debt and/or bank overdraft or you’ve been taking out short term loans then it is unlikely that debt consolidation will help you. There are bigger issues that you need to address, and we’d recommend that you seek free debt advice.


The type and scale of the debt you want to consolidate will help determine the right type of loan to use. If you own your home then you have the additional option of using either a secured loan or mortgage. But using these types of loan comes with additional risks – your home is at risk of being repossessed if you fail to keep up repayments.

Another option for those who have a bad credit rating and who want an unsecured loan is a guarantor loan. It could mean you could get a lower interest rate. If you don’t own your house but do own your car then you could consider a logbook loan – a loan secured on your car.

Debt Consolidation – part of a Debt Solution

You may think that if you have historic credit problems that you’ll never be able to get back in control of your finances. If you are saddled with various debts as well you may feel very vulnerable. We like to think that a loan to consolidate your debt is part of an overall plan to get control of your finances and family budget. It will not solve issues on its own, but if done properly it could help you as long as you take other steps.


There is little point going through the process of debt consolidation unless you stop racking up new debt. So, you also need to cut your expenditure.


Here are some ideas of what you could do:

  • Set a proper budget for you and your family – to do this properly take a little time to examine where your monthly income goes. Make sure this budget is less than your income.
  • Ensure you know precisely what your debts are – you may need to prioritise them.
  • Can you pay off any of your debt by selling unwanted goods (on eBay for instance)? It’s amazing what “stuff” people have collected and much of it may still have some value

Once you’ve got to a position where your debt is no longer growing, because of overzealous spending, and you’ve managed to pay off some debt (?) then look to reduce the cost of your existing debt through consolidation.


At any time you have access to free debt advice and we would encourage you to use it.

Guide to Managing Debt

If you’re uncertain which type of credit might suit you or you have a money problem then one of guides may help you. We summarise each type of loan and their pros and cons, and address issues regarding debt and credit ratings.


  • No Upfront Fees
  • Smart Online Service
  • Stay Safe & Secure
  • Independent & Impartial
  • Trusted Partners


For over a decade Solution Loans has helped people all over the UK find solutions to their personal finance problems.



rating starrating starrating starrating starrating star

Our reputation is great. In fact we have scored 4.7 out of 5 based on 1672 ratings & 252 user reviews across our range of services.


FIND A LOAN find a loan now

Answer 4 quick questions and we’ll tell you what kinds of credit may be available to you

APPLY NOW apply now

We provide quick and simple enquiry forms that are 100% safe & secure to access the loan you need.

Written/Reviewed by: Amanda Gillam

rotating loading icon
arrow to return to top