Surge in people searching for debt consolidation loans - could it help you?
Data shows people have started the new year with debt consolidation loans on their mind and are looking for ways to make repayments more affordable
- (opens in new tab)
- (opens in new tab)
- (opens in new tab)
- Look After My Bills Newsletter Newsletter

Searches for debt consolidation loans jumped by 29% in January compared to the same month last year.
The data from credit information company Experian suggests some people are looking for ways to make their debt repayments more affordable or simplify their repayments by bringing their debts together.
Just over a fifth (21%) of debt consolidation loan searches on Experian relate to people in their 30s.
The data also recorded jumps in people in their 40s and 50s looking for such loans.
James Jones, head of consumer affairs at Experian, said: “Our data suggests that people are looking at ways to take control of their finances and ease the squeeze on their purse strings.
“Those aged 40 to 60 in particular are increasingly searching for debt consolidation products. They often have families or dependants and are looking for ways to better manage their money by switching to products with a simplified payment plan and lower interest rate.”
How to tackle debt
It’s certainly not easy but there are ways to pay off debt and get support.
Mr Jones suggested 0% interest balance transfer cards can be a good option for people looking to make more affordable repayments.
He said: “People can reduce the amount they spend on interest by switching debts from existing cards. While there’s often a fee associated with the switch, you won’t need to pay interest for a set period, potentially as long as two years, meaning every penny goes towards lessening what you owe.
“If you’re struggling to repay credit or other bills, we recommend contacting a free debt advice service such as National Debtline (opens in new tab), Citizens Advice (opens in new tab) or StepChange (opens in new tab). The sooner you seek help the better, and talking to a debt adviser will not affect your credit score.”
When is it worth considering a debt consolidation loan?
If you’re paying off several high-interest debts on credit cards, store cards and overdrafts then debt consolidation can be a cheaper way to clear your debts - and has the added benefit of feeling a bit less overwhelming.
It involves taking out a single loan on a lower interest rate to repay your debts and means you don’t have to make separate monthly repayments to lots of companies you owe money to.
Our sister site Go.Compare allows you to compare debt consolidation loans (opens in new tab).
You should always use an eligibility checker first to see if you'll be accepted. This is important as any loan application will appear on your credit record, so making multiple applications could end up damaging your credit score.
Read more
Katie is staff writer at The Money Edit. She was the former staff writer at The Times and The Sunday Times. Her experience includes writing about personal finance, culture, travel and interviews celebrities. Her investigative work on financial abuse resulted in a number of mortgage prisoners being set free - and a nomination for the Best Personal Finance Story of the Year in the Headlinemoney awards 2021.
-
-
Seven ‘awful April’ price hikes – how to beat them and save money
A whole heap of price hikes are coming in this April – we run through the main ones along with ways to beat them and save money
By Sue Hayward • Published
-
State pension underpayment warning - have you been underpaid and eligible for more than £11,500?
Thousands of retirees, mainly women, are still owed money by the government after being underpaid their state pension. We explain what you need to know
By Katie Binns • Last updated
-
State pension age rise to 68 could be delayed - what it means for your retirement
The state pension age may stay at current levels for longer than expected after the government reportedly shelved plans to increase it to 68 by the late 2030s. We explain what it all means for you
By Stephanie Baxter • Published
-
Get more for your money with a stocks and shares ISA
A stocks and shares ISA could grow your money faster than a cash ISA. But what is it exactly and who is it suitable for?
By Ruth Emery • Published
-
Help to Save scheme extended - get 50p for every £1 you save
The government has extended the Help to Save scheme that can help you make the most of savings with an added bonus - we explain how it works and who is eligible.
By Kalpana Fitzpatrick • Published
-
Budget 2023: How much more can you save for retirement with the new pension tax changes?
The government has axed the pensions lifetime allowance, announced in the Spring Budget. We explain what this means and how it could give you a major pensions boost.
By Stephanie Baxter • Published
-
Pension savers set for a triple boost in the Budget
Jeremy Hunt is expected to hike a trio of pension allowances, including the lifetime allowance, in his Spring Budget on 15 March. We explain what it means for you
By Ruth Emery • Published
-
Silicon Valley Bank UK bought by HSBC - what does it mean for bank customers?
Silicon Valley Bank is an American bank that you won’t have seen on the UK high street - but its collapse this weekend caused the government much alarm. We explain everything you need to know
By Sue Hayward • Published
-
Save up to £300 on your supermarket shop with cashback accounts
Three banks offer cashback on your supermarket shop, but can you use them all to max out your savings?
By Vaishali Varu • Published
-
Workplace pensions: earnings limit change makes pension saving easier for more people
New workplace pensions legislation will mean more can bag extra money from their bosses
By John Fitzsimons • Published