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What is a debt consolidation loan?

A debt consolidation loan can help you manage your debt more effectively, by paying off some or all of your existing debt. If you have existing debt such as other loans, credit cards, store cards or an overdraft, a debt consolidation loan can be used to pay this off and convert what you owe into a single monthly repayment. A debt consolidation loan makes things easier to manage.

Check out our FAQs on debt consolidation loans

Debts stacking? Get cracking!

Combine all your existing debt into one place. Here's how a Virgin Money Debt Consolidation Loan works:

Personal loans from £1,000 to £25,000.

Repay over 1 to 5 years.

Rates from 6.9% APR to 28.9% APR.

If you're an existing customer, you may be able to borrow more over a longer period. Check your eligibility to see the terms available.

Calculate your estimated payments

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Work out how much to borrow and what your repayments and interest rates could be. Existing customers may be able to borrow more than £25,000 over a longer period. Check your eligibility to see the terms available.

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Borrowing close to where the APR changes?

Use the calculator slider tool to see how borrowing slightly more affects the monthly repayments and total loan amount. You may be able to reduce your monthly payments and your loan amount by borrowing slightly more. Always make sure you can afford the monthly payments.

See how the APR changes depending on the loan amount
Loan amount APR
£1,000-£2,999 22.9%
£3,000-£4,999 14.9%
£5,000-£7,499 7.4%
£7,500-£14,999 6.9%
£15,000-£25,000 7.0%

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Representative example

Total amount payable Includes interest
Based on borrowing

Monthly repayments
Paid over years

Fixed interest rate per annum
Representative APR

All loans are subject to status and eligibility and you must be over 18 and a UK resident to apply. The interest rate we offer you is based on how much you borrow. The minimum rate we offer is 6.9% APR and the maximum rate is 28.9% APR.

Ready to apply?

It's easy to check your eligibility and apply for a Virgin Money loan. Start a new application or continue with an existing application.

To be accepted for a loan you'll need to:

Check your eligibility  Continue application

Popular questions about debt consolidation loans

A debt consolidation loan could be a good option if you have lots of credit commitments and are finding it difficult to keep up with repayments. For example, you may owe money on more than one credit card, store card, overdraft or existing loan. With a debt consolidation loan, you borrow enough to pay off your existing debt and pay what you owe to one lender.

If you’re thinking of borrowing to sort out existing debt, it's important to consider your options before making a decision.

You might want to check out our 'dealing with debt' guide first.

If you’d like to talk to someone about money worries, please get in touch with our Financial Care team on 0800 141 2261.

Used carefully, a debt consolidation loan can help to make things easier. The benefits can include:

  • Depending on the rate offered, you may pay a lower rate of interest than what you're currently paying. If you are eligible for a loan with a lower interest rate, this could save you money
  • Making a single monthly repayment each month makes it easier to stay on top of what you owe, and reduces the risk of missing a payment. Keeping up with your repayments is a good way to protect your credit score
  • Instead of owing money to multiple lenders, you'll only deal with one lender

Used carefully, a debt consolidation loan can help to make things easier. The benefits can include:

  • Depending on the rate offered, you may pay a lower rate of interest than what you're currently paying. If you are eligible for a loan with a lower interest rate, this could save you money
  • Making a single monthly repayment each month makes it easier to stay on top of what you owe, and reduces the risk of missing a payment. Keeping up with your repayments is a good way to protect your credit score
  • Instead of owing money to multiple lenders, you'll only deal with one lender

After we have your loan agreement confirmed, we'll send your money. This will usually be within 2 hours or by the end of the next working day at the latest.

This does mean that there's a small chance you could be charged some interest before you receive your money. This is because interest is charged from the first day of your loan, not when it arrives in your account.

Credit scoring is how we decide whether you’re likely to pay the loan back. It’s based on your credit history, your income and the amount you spend each month. Essentially, it’s all about statistics: our scoring system allocates a certain number of points to the details you provide in your application, which is why it’s important to be absolutely accurate. We also look at your bank account(s) and ask a credit reference agency to create a historical report of your credit activities. The result is a score that helps us decide whether or not to lend to you.

So, we can work out whether you can afford the loan you’re asking for, we need to know:

  • How much you earn, before tax, each year. You can include your salary plus any pensions, allowances, regular overtime or commission payments and any additional income from, for example, rentals or interest from investments.
  • How much you spend each month on mortgage or rent, personal loans, credit cards and any hire purchase agreements.
View all questions about loans

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