Loan consolidation calculator
Combining debts into one loan almost always lowers the monthly payment. Whether it lowers the total is a different question, and this answers it.
How this is calculated
Your current position is simulated month by month at the rate and payment you enter, until the balance clears, which gives the real total interest rather than an estimate.
The consolidation loan is a standard amortising calculation over the new term, with any arrangement fee added to the amount borrowed.
The two are then compared on three things that matter separately: the monthly payment, the time to clear, and the total repaid.
A lower rate over a longer term can cost more overall despite the lower rate, because you are borrowing for longer. That is the trap consolidation adverts do not mention.
Rates used · 2026/27
| Typical consolidation APR | 7% to 20% depending on credit |
| Common terms | 3 to 7 years |
| Secured consolidation | lower rate, your home is at risk |
| Free debt advice | StepChange and National Debtline |
Last checked July 2026. Source: HMRC and gov.uk.
Worked example
An £11,700 balance at an average 21.5%, paid at £485 a month, clears in 2 years 8 months for £3,759 of interest. Consolidating at 9.9% over five years drops the payment to £248 a month and the interest to £3,181, saving £578. The payment falls by £237 but you are in debt for over twice as long.
Common questions
Is consolidating a good idea?
It is if the total cost falls and you stop using the cleared cards. It is not if it simply lowers the monthly payment while stretching the term and freeing up credit you then use again.
Should I secure it against my home?
That lowers the rate and turns unsecured debt into debt your house is at risk for. It is a serious step and worth free advice before taking it.
Will it affect my credit score?
A new loan application leaves a hard search and a new account. Both dip your score briefly, and clearing the old balances usually helps within months.
What if I am struggling?
Speak to StepChange or National Debtline before consolidating. They are free and independent, and consolidation is not always the right answer.