Debt consolidations loans – Debt consolidation – NatWest

Man using his phone

Debt consolidation loans

Debt consolidation could help you manage your finances

Apply Now Personalised loan quote - no impact on your credit rating

Our best ever Representative 3.9% APR  for loans of £7,500 to £25,000.

Other amounts available at alternative rates. Our rates depend on your circumstances and loan amount and may differ from the Representative APR. Over 18s and existing NatWest current account customers only.

Debt consolidation loans

A debt consolidation loan could be used to pay off your existing credit cards, store cards and other personal loans. You could consolidate all your debt into the one loan, so you only have one payment to make each month. Please remember that taking on any new debt is a big decision.

In particular, extending the term of your debt can incur more interest and cost more in the long run, and sometimes an early repayment charge may apply.Early Repayment Charge (ERC) is a fee that sometimes applies when re-paying debt early. It is less common with credit or store cards but more common with loans. If an ERC applies, remember to take it into account when working out the cost of a new loan.
 

Debt calculator

Use our debt calulator to see how much you'll need to pay back each month or how soon you could pay off your debt based on what you can afford to pay.

 

 

Apply now
Helpful tips Things to consider before applying
for debt consolidation loans

1. Work out how much you may need to borrow
Make a list of all your debts. Check the outstanding balances, interest rates you are currently paying and if there are any penalties for paying the debt early.

2. Helpful tools
You might want to use our loan calculator to find the right debt consolidation loan for you or our personalised loan quote to find out if you're likely to be approved, how much you may be able to borrow, the monthly repayments and personalised interest rate. There is no impact on your credit rating if you use the tool Our personalised loan quote won’t affect your credit rating in any way. It just leaves a short term note on your credit file that only you can see: not us, no other lenders, only you. . Using the tool will help you compare your current commitments with a new loan.

3. Think through your options: for example using savings to reduce debt could be cheaper than a new loan. 
The interest you receive on your savings might be lower than interest you pay on a loan so you might want to consider paying off your existing debt with any savings you have.
If you're struggling with excessive monthly payments you may want to speak to your current lenders, they may be able to help with a new payment plan or a re-payment holiday.

 Save money by paying off your debt quicker 

 1. Transfer your debt to a lower interest rate. 

Repaying your existing debts with a debt consolidation loan at a lower interest rate could save you money by reducing interest costs.
The repayment term will also affect the total cost so don't be tempted to extend it, keep it the same or shorter than your current debt.

Use our loans calculator to work out the best debt consolidation loan for you or our personalised loan quote to find out if you're likely to be approved, how much you may be able to borrow, the monthly repayments and personalised interest rate. 
All this without affecting your credit rating!Our personalised loan quote won’t affect your credit rating in any way. It just leaves a short term note on your credit file that only you can see: not us, no other lenders, only you.

2. Make higher monthly payments.

If you increase the amount that you repay each month you may be able to pay your existing debt off faster, saving you interest costs.

The terms of your existing debt might mean you can’t make additional payments.
If so, paying off your existing debt with a new loan and shorter repayment term achieves the same if the new interest rate is similar or lower than your current debt.

Reduce your monthly payments

If you are looking to reduce your monthly payments, carefully consider your alternatives before taking out a new loan. Approaching your current lenders or using existing savings may be more appropriate.

 1. Transfer your debt to a lower interest rate.

Repaying your existing debts with a debt consolidation loan at a lower interest rate could save you money by reducing interest costs.
But keep the repayment term the same or shorter than your current debt. Extending the loan term may reduce your monthly repayments, but overall it is likely to increase the total amount, including interest, which will have to be repaid. Our loan calculator will help see if you could save.

 2. Repay your debt over a longer period.

Whilst extending the loan term may reduce your monthly repayments, overall it is likely to increase the total amount, including interest, which will have to be repaid.

 

 

tablet-coffee-261
Add your signposting title here… Not sure which type of borrowing is right for you?

If you need to borrow money and you are not sure which product might be right for you, use our helpful tool to compare the features of different types of lending.

Compare my borrowing options
Helpful tools Useful tools from the Money Advice Service

Find out how to plan your budget.

Use the quick and easy debt health check to find out if you need to take action to reduce your debts.
Use the cut back calculator to find out how you can make savings on things that you buy regularly.

Set your money priorities, and get a plan that helps you meet your money goals with the Money Health Check.  

Personal loans Ready to apply?
Apply now
Set Tab for lightbox