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Compares your current monthly outgoings with a single consolidated facility. A longer term can lower payments but raise total cost.
The number to move: your weighted average rate
Your true cost of borrowing is the weighted average rate across all your debts. Consolidating a pricey balance into a lower-rate facility pulls that average down. A £20,000 debt at 18% folded into a £100,000 facility at 9% cuts the blended cost sharply.
The trap of a longer term
A lower monthly payment often comes from a longer term, not just a lower rate — and a longer term means more interest overall, even at a keener rate. Always compare on total amount payable, not the monthly figure.
Costs to check before you switch
Look for early-repayment charges on the debts you are clearing, an arrangement fee on the new one, and any deducted interest. Net these off before you judge the saving.
Model the consolidation
Add up your current debts and rates, then compare the blended cost with a single-facility quote using the calculator below.
Where Credicorp fits
Credicorp lends to your company, not to you personally, and takes no personal guarantee. See indicative terms on business loans, or apply online in minutes.
See weighted average interest rate and the debt consolidation calculator.
Frequently asked questions
Will consolidating always save money?
Not always. It lowers your blended rate, but a longer term can raise total interest. Compare on total amount payable and net off any fees before deciding.
What should I watch for?
Early-repayment charges on debts you clear, an arrangement fee on the new facility, and a term long enough to raise total interest despite a lower rate.
Does consolidation hurt my credit?
Handled well it can help, by simplifying and keeping payments on time. Applying for lots of credit at once, or missing payments during the switch, can hurt it.
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Credicorp lends to your company, not to you personally — short-term working capital with no personal guarantee. See what your business could access.