Consolidation Loans

Streamline your finances by combining overdraft, credit cards and any other borrowing into one simple monthly repayment.

Example: Borrow up to £15,000 at 16.5% APR 
All Loans are subject to our Lending Policy and Terms & Conditions

Pay it off sooner and save money on interest and fees

If you’re looking to pay off your overdraft, are stuck in the ‘minimum payment’ trap, or just want to combine everything into one simple monthly payment, we may be able to help. Combine it into one predictable monthly repayment, with a clear end date, and a lower rate of interest.

Consolidation Loans

Borrow Repay over APR
£2,500 – £15,000 6 Months 5 Years 16.5%

Key Features


Get a loan for any purpose


No arrangement or early repayment fees


Get approved in as little as 1 week


Decisions by a person, not a computer


Build savings as you repay

Eligibility Criteria


18-74 years old


In employment or self-employed with evidence of income


A UK home address


Not be in an IVA or bankrupt

Will I be approved?

Our consolidation loans are designed for those who are currently managing their debts, and who are looking to save money on interest, and to clear their debts sooner.

If you have large debts or are currently struggling to meet repayments, a consolidation loan may not be the right solution. All loans are subject to manual checks, but you are more likely to be approved if:


You are currently keeping up with your existing repayments and other financial commitments.


You owe a combined amount of less than £15,000 in unsecured borrowing (not including mortgage).

What you’ll need


A copy of your most recent payslip


Your National Insurance number


Proof of Address


Details of what you currently owe, including amounts, APR, and amount left to repay.

Good to know

What is a consolidation loan?
A consolidation loan is a personal loan which is used to merge together your existing borrowing into one convenient monthly repayment. This can be a good option when you have multiple debts (for example on credit cards or overdrafts) that you wish to pay off with a fixed end date.

Our consolidation loans usually come at a lower rate of APR than most credit cards, which means that you may end up paying less interest overall too.

Who can apply for a consolidation loan?
Any new or current member of London Mutual Credit Union can apply for a loan for any purpose, including debt consolidation. To join, you’ll need to live or work within our common bond

However, to benefit from our best rates and to have the option of repaying from your salary, you’ll need to be an employee of one of our salary deduction partners, which are listed here.

Is a consolidation loan right for me?

A consolidation loan will not be right in every situation, and there may be better alternatives, particularly if you are already facing significant difficulties with problem debt. 

According to the Money Advice Service, consolidating debts only makes sense if:

  • money saved on interest isn’t wiped out by fees and charges
  • you can afford to keep up payments until the loan is repaid
  • you use it as an opportunity to cut your spending and get back on track
  • you end up paying less interest than you were paying before and the total amount payable is less (it could be more if you repay over a longer period).

Read the full Guidance here

Will you pay off my credit card/overdraft on my behalf?

Once you are approved and receive the loan,we’ll usually leave it to you to contact credit card companies, banks or other companies to whom you owe money to arrange to get everything paid off.

Occasionally, when there are lots of creditors to pay, we may ask you to complete a debt consolidation form. This provides us with details to pay everything off on your behalf. This can sometimes save you time and reduce the stress of making lots of separate transfers.

Will a consolidation loan save me money?

This will depend on factors including the interest and fees paid on your existing debts, and how long it will take to pay them off. Our calculator tool will give an estimate, but cannot take every situation into account.

However, with the average credit card rate in the UK at a record high of 24.7% APR, there is a very good chance that you will save money with us. Our consolidation loan rate is 16.5% APR so if you are approved and pay on time, you could save significant amounts of money.

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This calculator helps you to estimate your current borrowing, and the potential savings of paying it off using a London Mutual Credit Union consolidation loan.

Important information

This calculator is provided as an informational tool enabling to compare the cost of borrowing with a typical London Mutual loan, compared to the average APR of a credit card in the UK (21 Sept 2021).

Please be aware that:

  • This summary is for illustrative purposes only, so as to give you, the borrower, an overview of the potential cost of borrowing.
  • Results should not be considered personalised financial advice, and if in doubt you should always seek independent professional advice.
  • The results of this tool will only be as accurate as the information you provide. Results are on the basis of information inputted, but there may be other factors which this tool does not take into account, which could change the result displayed.
  • We cannot be held responsible for any inaccuracies, errors or omissions.
  • Loan products may be withdrawn at any time and are subject to availability at the time of application.
  • All loan decisions and actual rates are dependent upon personal circumstances and credit reference information provided to us by Credit Reference Agencies.

What you currently owe

What you can afford to repay each month

Increasing this will enable you to pay everything off sooner, saving you money on interest.

Your Result

Consolidation loan
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  • Average credit card APR:
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