Debt Consolidation

Things to consider

A debt consolidation loan can be a smart decision in the right situation. Here are some tips to help you maximise the long-term benefits of a consolidation loan.

Before consolidating, evaluate your spending habits, review your direct debits and standing orders, and create a manageable budget. This will help you avoid ending up with more debt than you started with.

List the current credit balances that you want to consolidate. Add the balances together to give the total you need to borrow to repay them in full. Try to avoid partial consolidation, as residual balances can lead to future complications.

Consider the interest rate and repayments when paying off existing debts. You should also consider the debt consolidation loan term compared to your current debts. Longer repayment periods could cost more, even with a lower interest rate.

If you aim to reduce your outgoings and increase your disposable income by consolidating, bear in mind that it’s likely that you’ll pay more interest overall as it will take you longer to repay the loan.

After consolidating, you may feel you have more disposable income. Whilst enjoying the peace of mind that comes with this, stick to a realistic budget. Give yourself a few months to become accustomed to your new repayment schedule and begin to build a buffer.

After consolidating, cut up the credit and store cards and close all of the old accounts accounts. Otherwise, you could be tempted to use them again.

Debt Consolidation

Simplify your finances

Credit Cards

Credit Cards

High-Interest Loans

High-Interest Loans

Store Cards

Store Cards

Lines Of Credit

Lines Of Credit



Buy Now Pay Later

Buy Now Pay Later

Good to know

Potential benefits

Enhance cash flow and lower expenses by reducing your debt payments.

Take advantage of lower interest rates and reduce the cost of borrowings.

Repay your debt quicker and work towards becoming debt-free.

Simplify your finances by combining your existing debts into a single manageable loan.

Reduce your credit card utilisation and begin build your credit score.

Take advantage of short settlement offers your current creditors may agree to.

Pay off credit cards and escape the minimum repayment cycle.

Replace revolving credit with a fixed interest rate and no additional fees.

Overpay your loan without interest penalties, charges, or fees.

Where possible, we will repay your existing creditors directly.

Build savings as you repay your consolidation loan.

Looking to simplify your debts?

Our debt consolidation loan could be the answer. See how you could reduce your monthly payments by combining your debts into one with Boom Community Bank.


Cost of credit cards

Barclaycard 22.9% APR

HSBC 23.9% APR

Natwest 23.9% APR

Boom from 8.9% APR*

* Boom Representative APRs: Advantage Loan 10.4%, Choice Loan 19.4%, family Loan 31.3%, Access Loan 31.7% APR

Infomation sourced on 08/03/2023 from,, and Other products exist.

Comparing a fixed-term loan APR and Credit Card APR is not a like-for-like comparison. Loans charge a fixed interest rate over the life of the loan, while credit card APR is variable and can change. Credit card APR is typically higher than loan APR, but credit card users can avoid interest charges by paying off their balance in full each month. Loans are better for larger, one-time expenses, while credit cards are better for smaller, more frequent purchases.


This content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice. For more on Debt Consolidation Loans and independent financial advice:

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Frequently asked questions

How can I use a Consolidation Loan?

You can use a debt consolidation loan to pay off some or all your existing debts. For example, if you have credit card debt, personal loan debt, an overdraft or owe money on a store card, you could take out a debt consolidation loan to pay these off.

Do I have to become a member before I apply?

Just go ahead and apply; you don’t need to join first. We’ll register your free membership along the way.

How quickly can I get a loan?

We aim to respond within one working day. It may take a little longer if we need additional information, in which case we will contact you.

How much will I save money by consolidating?

If you have multiple loans, credit cards, or frequently use your overdraft, a consolidation loan could simplify your finances and even lead to savings. Our options may be more beneficial than you think. Apply today to see what we can do for you.

Can I speak with you before I apply?

We’re here to help, and there are several ways you can reach us. Visit our Contact Centre for all the details.

What is Open Banking?

We may need to look over your bank statements to complete a full assessment of your loan application. The quickest and easiest way to submit your bank statements is through Open Banking via our trusted partner, Open Banking gives us secure read-only access to view your account statements.

With this information, we will:

  • Verify your income
  • Carry out an affordable credit assessment
  • Be able to make a responsible lending decision is registered with and regulated by the Financial Conduct Authority to act as an Account Information Service Provider.