Benefits of a debt consolidation loan

Bringing your borrowing together in one place with a personal loan could help you take control of your money and get on track to being debt-free. With a loan you could have:

  • 3.1% APR representative for loans of £7,500 to £15,000 over 1 to 5 years
  • one fixed monthly payment
  • one firm date for when your borrowing will be paid off
  • one fixed interest rate.

Keep in mind that you may pay a higher rate of interest or make repayments over a longer term with a debt consolidation loan. This means that you may pay back more interest overall.

MBNA personal loans are provided exclusively by Lloyds Bank plc. MBNA Limited act as a credit broker and not the lender.

Here are a few things to think about before you take out a debt consolidation loan:

Your current borrowing

  • Have a look at all of your outstanding credit and loan commitments – which would it be sensible to move into a new loan?
  • Keep in mind you'll pay interest on a loan, so check your interest rates. If these rates are lower than what you could be offered, it might be worth leaving them where they are.
  • Do you have savings you could pay debts off with instead? Interest you pay on a loan is usually higher than any interest you earn from savings.

Apply for a debt consolidation loan

With MBNA, you could apply for a loan and take control of your borrowing today. As with any loan, when you apply there will need to be checks about your personal situation. These checks will affect the decision whether to offer you a loan. The loan amount and the interest rate you'll be offered will also be based on these checks.

 

How it works when you apply for an MBNA personal loan:

  • You can apply for between £1,000 and £25,000.
  • Choose to make your monthly repayments over 1 to 7 years.
  • It takes about 10 minutes to apply online and get a decision.
  • If you’re approved, you should have the money in your chosen account within 5 working days.

Representative example

You could borrow £10,000 over 48 months with 48 monthly repayments of £225.04. Total amount repayable will be £10,796.40. Representative 3.1% APR, annual interest rate (fixed) 3.06%.

The representative APR applies to loans of £7,500 to £15,000 over 1 to 5 years. Other terms and loan amounts are available at different rates. The maximum APR you could be offered is 29.9% APR.

The representative APR is the rate that at least 51% of people are expected to receive when taking out a loan within the stated amount and term range.

Apply now