Halifax Debt Consolidation Loans – Eligibility, Rates & Alternatives

What Is A Halifax Debt Consolidation Loan?

Halifax offers unsecured personal loans that can be used for debt consolidation. This means you can borrow a single loan amount to repay existing debts such as:

• Credit cards

• Store cards

• Overdraft balances

• Other personal loans

Instead of managing multiple repayments each month, you would make one fixed monthly repayment to Halifax over an agreed term.

Halifax may also offer remortgaging options for homeowners who wish to consolidate debts into their mortgage, although this is a secured form of borrowing and carries additional risk.

Halifax Loan Amounts, Rates & Terms

Halifax personal loans are typically available:

• From £1,000 up to £25,000 for new customers

• Up to £35,000 for existing Halifax customers

• Repayment terms usually between 12 and 60 months

• Representative APRs may vary depending on your credit profile

The interest rate you receive will depend on factors such as:

• Your credit score

• Your income and affordability

• The amount you borrow

• The length of your loan term

Halifax provides personalised quotes before you proceed, allowing you to see the total repayment amount.

When Might Halifax Decline An Application?

Halifax may decline applications if:

• You have recent defaults or CCJs

• You have missed payments on existing credit

• Your credit utilisation is high

• Your income does not meet affordability requirements

• Your debt-to-income ratio is too high

An unsuccessful application may leave a record on your credit file if a full credit search is completed.

Advantages Of Debt Consolidation

Debt consolidation can offer several potential benefits:

Simplified Budgeting

Combining multiple repayments into one can make your monthly finances easier to manage.

Fixed Repayment Schedule

A fixed term means you know exactly when your debt will be cleared.

Potentially Lower Monthly Payments

If your new interest rate is lower than your existing combined rates, your monthly repayments may reduce.

However, extending your loan term could mean paying more interest overall, so it is important to compare carefully.

Alternatives If You Don’t Qualify With Halifax

If you have been declined by Halifax, or if you have less-than-perfect credit, other lending options may be available.

At Debt Consolidation Loans (DCL), we work with a panel of lenders who consider a wider range of circumstances, including:

• Lower credit scores

• Past arrears

• Defaults

• CCJs

We take a personal approach to reviewing applications, focusing on affordability and responsible lending. Our initial checks use a soft search, meaning your credit score will not be affected at the enquiry stage.

If approved by one of our panel lenders, you would then proceed directly with them to finalise your agreement.

Is Debt Consolidation Right For You?

Debt consolidation is not suitable for everyone. It may help if:

• You are struggling to manage multiple repayments

• Your existing interest rates are high

• You want clearer structure around your finances

It may not be suitable if:

• You continue to use credit after consolidating

• The new loan extends your repayment term significantly

• Your financial situation is unstable

Carefully review your options before making a decision.

Frequently Asked Questions

 

Does Halifax offer debt consolidation loans?

Yes, Halifax offers personal loans that can be used for debt consolidation, subject to eligibility and credit checks.

Can I get a Halifax consolidation loan with bad credit?

Halifax typically lends to applicants with good credit profiles. If you have poor credit, alternative lenders may be more suitable.

Does applying affect my credit score?

A full application may involve a hard credit search. Always check whether a soft search is available before applying.

Can I consolidate debt into my mortgage with Halifax?

Homeowners may explore remortgaging options, but this converts unsecured debt into secured debt, which increases risk.

Apply For Debt Consolidation

If you would like to explore your options, you can apply online and our team will review your circumstances to determine whether one of our panel lenders may be able to help.

All applications are assessed responsibly and in line with FCA regulations.