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

3.4% APR representative for loans of £7,500 to £25,000 over 1 to 5 years.

  • No surprises, with fixed monthly payments
  • One firm date for when your borrowing will be paid off
  • One fixed interest rate
  • Choose to make monthly repayments over 1 to 7 years
  • Apply for between £1,000 and £25,000.

If you’re approved, you should have the money in your account within 24 hours. In some cases it may take a bit longer, but no more than 5 working days.

Compare the cost of your current debt with the cost of taking out a new loan to clear it. With a new loan, you may have to pay it back at a higher interest rate or over a longer term. This means you may pay back more overall.

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

Get started

Representative example

You could borrow £10,000 over 48 months with 48 monthly repayments of £222.89. Total amount repayable will be £10,698.72. Representative 3.4% APR, annual interest rate (fixed) 3.35%.

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.


Apply online with ease

Apply online for an MBNA debt consolidation loan in minutes and get an instant decision.

Repayment holidays

You could apply for up to 2 repayment holidays each year, subject to approval. Just be aware, interest is still charged for the months you don’t make payments. This means you’ll pay more interest overall and the loan term will increase.

Quick access to your cash

If your loan is approved, you could have the money within 24 hours. In some cases, it may take a bit longer, but no more than 5 working days.

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

You can also call a free helpline, such as the National Debtline on 0808 808 4000, or speak to the Citizens Advice Bureau.

Or you can call us for help.

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

  • 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 your debt consolidation loan, we’ll tell you how much your monthly repayments are going to be. This includes the interest and is a fixed amount until the loan is all paid off. 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. However, 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.

  • There’s no limit to the number of debts you can consolidate into one loan. However, if you’ve got a large number of outstanding debts, your credit rating might mean you may not be offered a loan. Or, if you are offered a loan, it may be at a higher APR.