Consolidate Your Debts
Into One Payment
Simplify your finances by combining credit cards, loans, and overdrafts into a single affordable monthly payment with a secured debt consolidation loan.
Quick Answer
Debt consolidation with a secured loan works by combining multiple debts — such as credit cards, personal loans, store cards, and overdrafts — into one single monthly payment at a lower interest rate. The loan is secured against your property, which allows lenders to offer rates of typically 7–9% APR compared to 20–40% charged by credit cards. Homeowners who consolidate commonly save £200 to £400 per month by replacing expensive unsecured borrowing with a single secured loan. Your existing mortgage remains completely unaffected as the consolidation loan sits behind it as a second charge. The key risk to understand is that your home is used as security, meaning it could be repossessed if you fail to keep up repayments. However, for homeowners managing multiple high-interest debts, consolidation can significantly reduce monthly outgoings and simplify finances into one manageable payment.
£320/mo
Average saving
7–9%
Typical APR
£500,000
Up to
Debt Consolidation Calculator
Calculate Your Savings
Enter your current debts to see how much you could save each month
Your Current Debts
Current Monthly Payments
£616/mo
New Consolidated Payment
£251/mo
£25,500 at 8.5% over 15 years
That's £4,380 per year
Simple Process
How Debt Consolidation Works
Three straightforward steps to consolidate your debts into one manageable payment
Add up your debts
List all your existing debts — credit cards, personal loans, store cards, overdrafts. Work out the total you owe and what you pay each month across all of them.
Get a secured loan quote
Use our calculator or speak to an adviser to get an instant debt consolidation loan quote. We compare rates from our full panel of UK lenders to find the lowest rate for your situation.
One simple payment
Replace multiple debts with a single secured loan at a lower interest rate. One payment, one due date, one step closer to being debt-free.
Worked Example
See How Much You Could Save
A real-world example of how debt consolidation could reduce your monthly payments
Current Monthly Debts
| Debt | Interest Rate | Monthly Payment |
|---|---|---|
| Credit card 1 | 22.9% | £185 |
| Credit card 2 | 19.9% | £142 |
| Personal loan | 14.9% | £289 |
| Store card | 29.9% | £87 |
| Overdraft | 39.9% | £144 |
| Total | — | £847/mo |
Consolidated with a Secured Loan
£489/mo
Single payment at 7.9% APR over 10 years
Example for illustration only. 5 debts totalling £32,000 consolidated into a secured loan at 7.9% APR over 10 years. Monthly payment £489. Total amount repayable £58,680. Your actual rate and savings depend on your individual circumstances. THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME.
What Is Debt Consolidation?
Debt consolidation is the process of combining multiple debts into a single loan with one monthly payment. If you are juggling credit cards, personal loans, store cards, and overdrafts, a debt consolidation loan can simplify your finances and potentially save you hundreds of pounds each month. By replacing high-interest unsecured borrowing with a single secured loan at a lower rate, you reduce both the complexity and the cost of your debt.
A homeowner loan for debt consolidation works by securing the borrowing against your property. Because the lender has your home as security, they can offer significantly lower interest rates than credit cards or personal loans — typically 7–9% APR compared to 20–40% on credit cards. This means more of your monthly payment goes toward clearing the actual debt rather than covering interest charges. For homeowners with equity in their property, using a secured loan to consolidate debts is one of the most effective ways to regain control of their finances.
At Secured Loan Hub, we specialise in helping UK homeowners find the right debt consolidation loan for their circumstances. As an FCA-authorised credit broker, we compare deals from our full panel of specialist lenders — including options for applicants with adverse credit. Our service is completely free, and we will never recommend a product unless it genuinely improves your financial position. Whether you owe £5,000 or £500,000, our advisers will show you exactly how much you could save before you make any commitment.
FAQ
Debt Consolidation Questions
What is a debt consolidation loan?
A debt consolidation loan lets you combine multiple debts — such as credit cards, personal loans, and overdrafts — into a single, manageable monthly payment. When secured against your property, a debt consolidation loan typically offers a lower interest rate than unsecured borrowing, which can significantly reduce your total monthly outgoings.
How much could I save by consolidating my debts?
Savings vary depending on your current debts and interest rates. Many homeowners save £200–£400 per month by replacing high-interest credit cards and loans with a single secured loan at a lower rate. Our advisers will provide a detailed comparison showing your exact potential savings before you commit.
Can I consolidate debts with bad credit?
Yes. Because a debt consolidation loan is secured against your property, lenders are often more flexible with credit requirements. Our panel includes specialist lenders who consider applicants with CCJs, defaults, missed payments, and other adverse credit history. Your rate will depend on the nature and age of any credit issues.
Will consolidating debts affect my mortgage?
No. A secured debt consolidation loan sits behind your existing mortgage as a separate second charge. Your current mortgage rate, term, and monthly payments remain completely unchanged. This is a key advantage over remortgaging to consolidate debts.
Is there a fee for using Secured Loan Hub to consolidate my debts?
No. Our debt consolidation advice service is completely free. We are paid a commission by the lender only if a loan successfully completes. All fees, including any lender arrangement fees, are disclosed upfront before you make any commitment.
Ready to simplify your debts?
Get a free, no-obligation debt consolidation quote from our FCA-authorised advisers. No hard credit check.