How does a debt consolidation loan work?

A debt consolidation loan is a personal loan you can use to pay off any other debts you have. These can include store cards, credit cards, overdrafts, and even other loans.

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

Features of a debt consolidation loan

8.7% APR representative for loans of £7,500 to £25,000 over 1 to 5 years.

  • Check if you're eligible to apply for a loan by answering a few questions and if pre-approved, get a personalised rate - with no effect on your credit score.  
  • No need to re-type your answers - as long as nothing's changed, you don't need to type these details in again.
  • Apply online in minutes and get an instant decision.

If you’re approved, you should have the money in your account within 2 hours. Sometimes it may take a bit longer, but no more than 3 working days.

Choose to make your monthly repayments over 1 to 7 years for loans between £1,000 and £25,000.

Other amounts and terms are available at different rates.

Debt consolidation loan calculator

Use our calculator to get an idea of what your monthly repayments could be. Note: this calculator is for illustrative purposes only. If you apply, you may be given a different rate depending on your circumstances.




Monthly repayments


Total amount repayable


Illustrative APR


The rate you are offered may be different to the rate shown in the calculator.

That is because it is based on your personal circumstances, how much you want to borrow and how long you want to pay it back.

Apply now to get your personalised rate

Check your eligibility

Representative example

You could borrow £10,000 over 48 months with 48 monthly repayments of £245.88. Total amount repayable will be £11,802.24. Representative 8.7% APR, annual interest rate (fixed) 8.37%.


The 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 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.

A few things to think about before taking out a debt consolidation loan.

Your borrowing options

  • Have a look at all of your current outstanding credit and loans. Ask yourself which ones make sense to move into a new loan?
  • Check the interest rates on your existing debts. If the rates on your existing debts are lower than what you could be offered on a new loan, it might be worth leaving them where they are.
  • Do you have any savings you could pay debts off with instead? Interest you pay on a loan is usually higher than any interest you earn from savings.
  • A balance transfer credit card can be used to transfer existing credit cards and store cards to one place. There are often promotional offers when taking out a balance transfer card so you could pay little or no interest while in the promotional period. Watch out for any transfer fees though.

Debt help and advice

Worried about debt? These help and advice pages may help.

Money worries

How to look after your debt

Independent help and advice

Or you can call us for help.

What happens now

Check your eligibility

It only takes minutes to complete our eligibility checker. With it you get:

  • to find out if you're eligible to apply for a loan.
  • if pre-approved, get your personalised rate with no effect on your credit score.

What do we need to know about you?To help us get to know you a bit better, here's a few things we'll need from you: your personal and contact details, details about your money coming in and going out and your employment details. Don't worry, as long as nothing's changed, there's no need to type these details again if you go on to apply.

Get a quick decision

Go on to apply and you'll get an instant decision.

Get the money in your bank

If we approve your loan, you should have the money in your account within 2 hours. Sometimes it may take a bit longer, but no more than 3 working days.

You can apply for a loan if:

  • You’re aged 18 or over.
  • You’re a UK resident (excluding the Channel Islands and Isle of Man).
  • You’re not in full-time education.
  • You’re in paid employment or have a regular income.
  • You’ve not been declined for credit in the last month.
  • You don’t have a history of bad credit.
  • You are not applying for any of these reasonsLoans will not be provided for speculative purchases (gambling, investments and share purchases), any illegal purposes, business related purposes, purchase/lease of land or property, either full or part purchase (including deposit), timeshares/holiday clubs..

Frequently asked questions

  • All of our loans are unsecured, meaning they’re not secured against anything such as the vehicle or your home.

  • Getting a personalised quote, telling you what your repayments would be, doesn’t affect your credit score – we’ll only do a ‘soft search’ then. If you go on to apply, we’ll then do a full credit check, called a ‘hard search’. This helps us understand if you’re likely to have any problems paying the loan back.

  • When you apply for a debt consolidation loan, we’ll tell you how much your monthly repayments will be. This includes the interest and is a fixed amount until you pay the loan back. The repayments will start the month after your agreement begins. We’ll take them by Direct Debit on a date that suits you.

    If you want to, you can make extra payments with no charge. If you pay the loan off early, we may charge you up to 58 days’ interest.

    If you miss a repayment, your account may be passed onto our collections team and you may be charged £25. And if more repayments are missed, you may be charged more.

  • Our eligibility checker is an online tool you can use to tell us a bit about you and your circumstances. By answering a few questions, you can:

    • find out if you're eligible to apply for a loan.
    • if pre-approved, get a personalised rate.
    • relax - as long as nothing's changed, you don't need to re-type any of the details you've already given us.

    All of this, before you apply and with no effect on your credit score.