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If you have multiple store cards or loans and think they’re getting out of hand, you might want to consider a Halifax debt consolidation loan.

Halifax began in 1853 in the town by the same name in Yorkshire. It has grown into one of the most recognised British banks and remains part of the Bank of Scotland. Halifax is one of the only UK banks that is known for its quirky TV adverts, which have previously featured Scooby-Doo, Top Cat and The Flintstones. 

They currently offer a selection of everyday banking products and savings accounts, as well as the Halifax debt consolidation loan which might be the debt solution you’ve been searching for. 

First, What Are Debt Consolidation Loans?

If you have multiple debts through loans, credit cards or store cards, you might be able to pay them all off through a debt consolidation loan.

The idea of these loans is that you take out the credit you need to repay all of your outstanding debts, meaning you now only have one debt (the new loan you just took out). But you don’t just do this for the sake of it. The new loan should have a more affordable repayment rate than the combined repayment terms of your old debts.

It is advised to learn more about debt consolidation loans so you know what mistakes not to make. 

What Is a Halifax Debt Consolidation Loan?

Halifax offer their own personal loan which can be used as a way to consolidate debts. Unlike many other well-known banks in the UK, Halifax even advertise this personal loan as a debt consolidation loan. This is rather unique because many competing banks advertise “personal loans” only and state they can be used to consolidate debt.

The Halifax debt consolidation loan comes with different APR rates and amounts you can borrow depending on your circumstances – and if you are already a Halifax customer. 

Halifax Debt Consolidation Loan Reviews

It is not uncommon for the big banks to have bad reviews online. 

Although you shouldn’t just accept this, you need to be aware that most people will review something bad over something good when it comes to a sensitive topic like finances. Halifax’s current Trustpilot reviews give them a rating of 1.7 out of 5.

Recent reviewers have been saying:

“Excellent, refunded me when my holiday was cancelled, very nice and polite customer service.”

[Trustpilot]

“Very disappointed in this bank. Leaving a father of 4 children with no money at this time of year, how does this bank think I can live with no money they took my full wages I am very upset.”

[Trustpilot]

Unfortunately, there are currently no reviews that specifically mentioned personal loans. 

Who Can Apply for a Halifax Debt Consolidation Loan?

Both UK residents with and without a Halifax account can apply for their debt consolidation loans up to £25,000. This is also the policy that Santander adopts, but it is not the same as Nationwide where you must have a Nationwide account already.

You can borrow a further £10,000 (up to £35,000) if you are a Halifax customer, but if you do need to borrow such significant sums to consolidate debt, you probably shouldn’t be using a debt consolidation loan. 

More favourable debt solutions exist in these situations, such as an IVA which could wipe a lot of your debt.  

The best thing about being a Halifax customer and applying for their debt consolidation loan is that they do not do a credit search. This could make a big difference.

Further Criteria to Get a Halifax Personal Loan

But there will be other criteria that applicants must meet to be considered for their personal loans. To apply, you must:

  • Be 18 and live in the UK
  • Have regular income (usually employment)
  • Not a full-time student
  • Not had credit applications rejected in the last 30 days
  • You must not have bad credit or have been declared bankrupt

What Are the Halifax Personal Loan Interest Rates?

The best APR rate you can get on a Halifax debt consolidation loan is 3.45%. However, this is only available to loans between £7,500 and £25,000 which you need to repay within five years. The exact APR rate you receive will depend on your personal debt and finances. The maximum that Halifax will charge is 29.9% APR.

Halifax Debt Consolidation Loan Repayment Periods

Halifax is able to match the loan repayment period of Nationwide by offering some repayment plans up to seven years. This is slightly better than those offered by Santander which are usually capped at five years. 

Is There a Halifax Debt Consolidation Loan Calculator Online?

Yes, there is a Halifax personal loan calculator that can be used to get an idea of what type of repayment plan you could get. But it is essential that you use the calculator as a guide only. 

On many occasions, potential customers see low APR rates calculated but are then offered less appealing loan terms. 

How to Apply for a Halifax Debt Consolidation Loan

If you have a Halifax account already and use internet banking, you can apply for a loan on your account and it is said to take one minute. A decision will be made almost instantly and the credit can be in your Halifax account in just one minute.

You can also apply online if you don’t have a Halifax account, but this will take slightly longer. If successful, the credit may take up to five working days to hit your external bank account.

The MoneyNerd Verdict on Halifax Debt Consolidation Loans

The rates available at Halifax are not as appealing as those offered by other big-name banks, but they do come up trumps with repayment periods lasting up to seven years. The lack of a credit check on existing customers is a massive bonus, but if you are not already with Halifax, they probably aren’t your best option. 

About the author

Scott Nelson

Scott Nelson is a financial services expert, with over 10 years’ experience in the industry, including 6 years in FCA regulated companies. Read more
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