Before you apply for a debt consolidation loan, consider:

Your monthly repayments: It’s so important to only borrow what you can afford. If you miss any monthly repayments, it can negatively impact your credit score.

How much you should borrow: Only apply for the amount you need. It will need to be repaid in the future, so only ask for the minimum required to cover your debt. Also make sure you don’t start spending on your credit cards again, as this will increase your debt further.

Your overall debt: A debt consolidation loan may reduce your repayments each month, but remember, by consolidating existing borrowing, you may be extending the term of the debt and increasing the total amount you repay.

Your financial problems: Borrowing more money to pay off your debt doesn’t tackle the reasons why you got into debt in the first place. As well as borrowing through a debt consolidation loan, you need to address the root cause of your debt too.

By using our debt consolidation loans calculator, you can:

• Understand what your monthly repayments may be: This can help you decide what you can realistically afford to pay each month.
• See how the interest rate affects your monthly repayments: You’ll know the total amount you’d need to pay over the term of the loan.
• See how the term of the loan affects your monthly repayments: By moving the length of the loan up and down on the calculator, you can see how this impacts your monthly repayments. It will give you an idea of what you can afford in the short and long term.
• See how much debt you can clear: With all the figures at hand, you’ll get a clearer understanding of how much of your existing debt you can pay off and the likely difference in monthly repayments.

Many people use debt consolidation loans to pay off existing debts like credit cards, personal loans, store cards or overdrafts, and consolidate them into one manageable loan.

When you owe money via credit cards, store cards or an overdraft, for example, your interest rate may be higher. It could make sense to pay these debts off using a debt consolidation loan with a lower interest rate.  This way you know exactly how long it will take you to pay off the debt.

Check your eligibility for a loan on amounts ranging from £1,000 to £25,000 through Asda Money partnership with Aro. You should only borrow what you can afford, and just enough to cover your debts.

At Asda Money, we work with Aro, who we have a carefully selected panel of trusted UK lenders. With just one quick eligibility check, you’ll be able to see all the available personal loans that match your requirements including the APR, you can then adjust the loan amounts and terms to see how your options change.

We have partnered with Aro to make sure we search a wide range of trusted lenders to find the right loan for you. You can then compare all the available personal loans to find the one that fits you and your personal circumstances.

Aro are a credit broker, not a lender.