Debt consolidation loans

A debt consolidation loan is a type of loan that could cover the cost of other existing debts you hold. It could help you manage your debt into one simple fixed monthly payment.

What are the benefits?

With a debt consolidation loan you could benefit from:

  • 6.4% APR Representative on loans between £7,500 - £25,000 over 1-5 years. 
  • Loans between £1,000 and £50,000 over 1-7 years.
  • Becoming debt-free – get a clear view of when you’ll be debt-free.
  • A clearer view of your finances – get peace of mind with one fixed monthly payment.
  • Managing your loan online - keep track of your loan using Internet Banking or the Mobile Banking app.

Other amounts and terms are available at different rates.

Things to consider

You may pay more interest overall - you may pay a higher rate of interest or make repayments over a longer period.

Reviewing your finances - can you cut overall spending while paying the loan back? 

Other borrowing options - there may be other borrowing options that are better suited to your personal circumstances.

Have you got car finance (PCP or HP) elsewhere?

See if you could save some money by switching your current car finance to us.

Have a look at our car refinance options.

Apply for a debt consolidation loan

To apply for a debt consolidation loan, you need to:

  • be aged 18 years or older
  • be a UK resident (excluding Channel Islands and the Isle of Man)
  • have held a Lloyds Bank current account for at least 1 month
  • be in paid employment or have a regular income and are not a full-time student
  • have a good credit score, with no history of bad credit, such as County Court Judgements (CCJs) or bankruptcy.
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Why select a Lloyds Bank Personal Loan?

How debt consolidation loans work

  • Borrow between £1,000 and £50,000 over 1-7 years.
  • For completed applications the money will be in your account the same day; 9am-8.30pm, or before 9am the next working day.
  • It's easy to keep track of your loan using Internet Banking or the Mobile Banking app. You can also phone us or visit us in branch.
  • The amount you can borrow and rate offered will depend on your personal circumstances.

Offering you flexibility

  • Repayment holidays - you can apply for up to two repayment holidays of 1 month in a rolling 12-month period. Subject to approval.
  • Make over payments with no extra charge.
  • Early repayment option -  We will charge up to 58 days' interest for early settlement.

Representative example

You could borrow £10,000 over 48 months with 48 monthly repayments of £235.86. Total amount repayable will be £11,321.28. Representative 6.4% APR, annual interest rate (fixed) 6.22%.

This representative APR applies to loans of £7,500 to £25,000 over 1 to 5 years. Other terms and loan amounts are available at different rates. The maximum APR is 29.9% APR.

Loan calculator

Use our handy loan calculator to work out how much your loan payments could be. It will give an indication of monthly payments and APR.

Find out your personalised rate by logging on to Internet Banking.

Get a quote in minutes

Log on to Internet Banking to get a personalised quote.

  • Tell us how much you want to borrow and over how long to get a quote in minutes.
  • This won't affect your credit score.
  • If you go on to apply, you’ll get an instant loan decision online.

Log on to get a quote

Have you got car finance (PCP or HP) elsewhere?

See if you could save some money by switching your current car finance to us.

Have a look at our car refinance options.

Frequently asked questions

Other ways to apply

Apply in branch – our local branch will be happy to help you apply for a loan.

Find your nearest branch 

Apply over the phone – if you have a:  

  • Lloyds Bank Current Account, call us on 0330 123 3890.
  • Credit card, mortgage or existing loan with us, call us on 0330 123 4715. 

Speak to an adviser 8am-10pm, every day.

More about loans

Related products

Important legal information

Lloyds Bank plc. Registered office: 25 Gresham Street, London EC2V 7HN. Registered in England and Wales No. 2065. Lloyds Bank plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 119278.

Eligible deposits with us are protected by the Financial Services Compensation Scheme (FSCS). We are covered by the Financial Ombudsman Service (FOS).

How much we lend and the rate available are subject to our assessment of your circumstances. You must be 18 years of age or over and a UK resident. You must have had a Lloyds Bank current account for at least one month.