Debt consolidation means taking out one new loan to pay off several existing debts — credit cards, catalogue accounts, overdrafts or other loans — so you're left with a single lender and a single monthly payment instead of several.
Whether consolidating actually saves you money depends on the new representative APR compared with the rates on your existing debts, the term of the new loan, and whether any of your current agreements charge an early repayment fee. A lower monthly payment isn't automatically a cheaper deal — a longer term can mean paying more in total, even at a lower rate.
To be approved for a consolidation loan, the lender will run a new credit and affordability check, in the same way as for any other personal loan. They'll typically want to see the balances and lenders you intend to pay off.
If your existing debts already feel unmanageable, it's worth speaking to a free debt charity such as StepChange or National Debtline before taking out further credit — consolidation isn't the right answer for everyone.
Below we've listed lenders offering debt consolidation loans, with loan amount, representative APR and a representative example for each.