Consolidating Loans with Bad Credit
At Updraft, we believe in credit that lifts you. We’re here to reshape the debt help space - offering clarity, confidence, and a path forward that helps you feel in control again.
Updraft’s Bad Credit Consolidation Guide
This guide is designed to help you understand how debt consolidation loans work, especially if you’re dealing with bad credit. It’s for educational purposes only and isn’t financial advice. Everyone’s situation is different, so we always recommend speaking with a qualified independent adviser or free services like MoneyHelper or Citizens Advice before making decisions about credit or borrowing. See how long it could take to repay your debt.
Introduction to Debt Options
If you’re juggling multiple debts – like credit cards, loans, or overdrafts – you’re not alone. A debt consolidation loan can bring your borrowing together into one simple monthly repayment. Instead of managing several payments, you focus on one clear, predictable schedule – helping reduce stress and missed payments.
It’s not about borrowing more. It’s about finding structure, breathing room, and a plan that helps you lift yourself toward financial stability.
Debt Consolidation for Bad Credit UK
If your credit score isn’t where you’d like it to be, you may still have options. A debt consolidation loan for bad credit can simplify repayments and, over time, help you rebuild confidence in managing credit.
At Updraft, we take an honest, supportive approach. We’ll look at your full financial picture – not just a number – and help you explore a fair, transparent way forward. (Debt help and free support).
How to Combine Debts with Bad Credit
A bad credit consolidation guide is about progress, not perfection. When you combine debts with bad credit, you replace several interest rates and payment dates with one consistent plan. That regularity can make it easier to budget, protect your credit score, and move forward with confidence.
Unsecured Debt Consolidation Loans
Updraft offers unsecured debt consolidation loans (subject to status and affordability) designed to make borrowing simpler, not riskier. You don’t have to put up an asset like your home as collateral, and you can manage your debt in one clear place.
(When consolidating existing borrowing, you may extend the term of your debt and increase the total amount you repay.)
“Your credit score doesn’t define you, but it can open doors to your future. We started Updraft to put control back in people’s hands – giving you the tools to turn credit from a source of stress into a way to move upward.”
Aseem Munshi
Updraft Founder & CEO
How Debt Consolidation Loans Work
The process is designed to give clarity. Instead of tracking multiple loans, cards, and due dates, a debt consolidation loan means one lender, one repayment date, and one end goal.
After approval, you’ll receive a clear offer outlining the terms before you proceed – no surprises, just straightforward credit that helps you stay organised and in control.
Benefits of Debt Consolidation
Consolidating your debts can:
Simplify your monthly repayments
Reduce the risk of missed payments
Provide one clear repayment timeline
Help you focus on your financial goals with less noise
It’s a way to tidy up your borrowing, regain momentum, and focus on the bigger picture – credit that lifts you toward financial freedom.
Eligibility and Credit Score
Even with bad credit, you may still be eligible for a debt consolidation loan. Lenders will look at income, affordability, and your history of managing repayments.
Checking your credit report before applying can help you understand where you stand. Remember, responsible borrowing and regular repayments can gradually strengthen your credit score – one positive step at a time.
Types of Debt Consolidation Loans
There are two main types:
Unsecured loans – based on your creditworthiness, no asset required
Secured loans – backed by collateral such as your home, usually with lower rates but higher risk if you can’t keep up repayments
Choose what aligns with your situation and goals – the right choice is the one that helps you move forward, not backward.
Who Debt Consolidation Can Help
We call them Smart Jugglers – people managing busy lives, regular payments, and multiple forms of credit. Debt consolidation helps bring those moving parts together into one focused, manageable plan.
It’s about support, not judgment – helping you make progress, step by step.
Managing Your Monthly Repayments
Consistency is key. Setting up a direct debit ensures your repayment is made on time each month. This helps you stay on track, protect your credit score, and avoid late fees.
Avoid taking on new borrowing while repaying your consolidation loan – this helps you stay focused on reducing debt and lifting your finances, not adding to them.
Next Steps
For a clearer view of your finances, the Updraft app helps you track your credit score and understand your borrowing. It’s all part of helping you feel in control – because credit that lifts you starts with clarity, not complexity.
Final Thought
Want to take control of your money? If you’re looking to consolidate credit card debt and cut down on high interest, download the Updraft app today.
Loans from 14% APR. 24.6% APR Representative.
24.6% APR Representative based on a £10,000 loan over 60 months at 19.9% fixed interest p.a. Monthly repayment: £277.60. Total repayable: £16,656 (inc. £500 fee). Subject to status and affordability. Consolidating debt may increase the term and total amount repaid.
All figures are representative, the rate you are offered will depend on an assessment of credit worthiness and affordability. Terms and conditions apply.
Updraft Awards & Recognition
Recognised for helping UK borrowers take control of debt.
