Debt Consolidation Loans
Combining multiple debts for easier management
Representative 9.9% APR (fixed)
Rates from 2.8% APR
Representative example: If you borrow £5,000 over 60 months at a representative 9.9% APR will cost £104.95 a month. Total amount payable £6.297.23. Annual interest 9.9% fixed. Credit subject to status. UK residents aged 18 or over.
Credit card debt building up? Extended your overdraft one too many times? Here at Asda Money, we know that life can get expensive. That’s why we offer debt consolidation loans between £1,000 - £25,000 to pay off your existing debts, turning them into one easier to manage payment and potentially reducing the interest you pay.
We offer borrowing rates from 2.8% APR and search our panel of trusted UK lenders to find the right loan at the right rate for you. We check if you’re eligible for a loan without impacting your credit score and give you a decision in minutes.
If you are thinking of consolidating existing borrowing you should be aware that you may be extending the terms of the debt and increasing the total amount you repay.
Why choose Asda Personal Loans?
The Asda advantage
Known for putting value for money at the centre of everything we do
One simple form…
Receive quotes from our trusted panel of lenders without harming your credit score
Asda service, Asda value, expert providers
A loan offer that’s best for you and your circumstances
How does a debt consolidation loan work?
A debt consolidation loan is used to pay off multiple existing debts, resulting in you only having one monthly repayment. It makes managing your debts simple and easy, and also helps you to keep track of your general monthly outgoings.
The majority of debt consolidation loans are unsecured, meaning they are lent to you based on your credit history. However, some can be secured against an asset, the most common being a house. If you do opt for a secured debt consolidation loan, you need to consider that the bank, building society or lender could seize your asset from you if you fail to make repayments.
Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.
What are the benefits of a debt consolidation loan?
- Improved budgeting: This type of loan means that some or all of your debts will be combined into one, making monthly repayments easier to manage. This should hopefully lower the chances of making late repayments or going into unarranged overdrafts.
- Improved credit rating: If a debt consolidation loan helps you to keep track of your repayments, then this may improve your credit rating. By paying all your debts off on time, you’ll prove to future lenders that you’re a responsible borrower.
- Reduced monthly repayments: A debt consolidation loan may even save you money each month. This is because your new loan could have a lower interest rate than your current combined rate of the previous debts.
What should I be aware of before I consolidate my debt?
- Don’t be tempted to borrow more than you need: When applying for a debt consolidation loan, be careful not to request more than you need. It will still need to be repaid in the future, so it’s advisable to ask for the minimum you need to cover your other loans.
- You could increase your overall borrowing: Although a debt consolidation loan may save you money each month, the term may be longer. If you are thinking of consolidating existing borrowing, you should be aware that you may be extending the term of the debt and increasing the total amount you repay.
Top Personal Loans FAQs:
- Why choose an Asda Personal Loan?
We’ll provide the best rate for you from our carefully selected trusted lenders so you can sit back and let us do the leg work. What’s more, when you look for a loan with us, we soft search your credit history, which means we can check your eligibility without harming your credit score.
Once your loan is approved, you could receive your funds the same day.
- How does it work?
Asda Personal Loans is in partnership with Freedom Finance who are a leading credit broker to offer our customers a different solution to borrowing money and finding a loan. We work alongside Freedom Finance so we can provide our customers with their very best loan offer from our panel of handpicked trusted lenders.
With one application, we search our panel of carefully selected lenders and provide you with a loan tailored to your needs. Once you have been approved you receive your funds which could be as quick as the same day.
So sit back, relax and let us do the hard work.
- Who are your lenders?
We have carefully selected a number of trusted lenders to be on our panel. We will search our panel to provide you with the very best offer you are eligible for. Find out more about each of our lenders here.
If you have any questions on our lenders, please call our Customer Service Team on 0333 555 0560 and a colleague will be happy to help.
- How much can I borrow?
Our lenders offer loans from £1,000 up to £25,000 with repayment periods ranging from 1 to 7 years.
- Will applying affect my credit rating?
No. One of the best things about our service is you get access to our panel of trusted lenders with no credit footprint left on your credit file. When you apply with us, we complete a soft search which doesn’t harm your credit score.
However, if you do proceed with an offer from us, the lender will complete a hard search once you have accepted your offer. This will show on your credit file.
About our trusted provider, Freedom Finance
Asda Personal Loans is in partnership with Freedom Finance, who are a leading credit broker, to offer our customers a different solution to borrowing money and finding a loan. They were awarded Best Consumer Credit Broker in the 2020 Consumer Credit Awards – voted for by customers.
We work alongside Freedom Finance so we can provide our customers with their very best loan offer from our panel of handpicked trusted lenders.
With one application, our panel of carefully selected lenders can provide you with a loan tailored to your needs. It’s also a safe way to find a loan without negatively affecting your credit rating.
ASDA Money is a trading name of Asda Financial Services Ltd who are an Introducer Appointed Representative of Freedom Finance Limited (company number 06297533) of Atlantic House, Atlas Business Park, Simonsway, Manchester, M22 5PR. Freedom Finance Limited acts as a credit broker and not as a lender and is authorised and regulated by the Financial Conduct Authority (FRN 662079).