What Happens After You Apply for Debt Consolidation?
11th July 2025
If you've just applied for a debt consolidation loan, or you're thinking about it, you might be wondering what happens next.
This blog walks through what the journey could look like, step by step, so you know what to expect.
Step 1: You Apply
When you apply for a debt consolidation loan, you'll need to share some basic details. This includes:
- Your income
- The amount you’d like to borrow
- Your rent or mortgage
- Utility bills and other regular expenses
You can read more about choosing which debts to include in our blog: Choosing Which Debts to Consolidate: What Matters Most?
*All applications are subject to checks on your credit history and financial situation. Not everyone who applies will be approved.
Step 2: Your Application Gets Reviewed
Once you apply, the lender reviews the details you shared. They’ll check whether the loan is suitable for you. They will carry out a credit check to understand how comfortably you could manage the new repayment.
In some cases, you may be asked to upload documents, such as payslips or bank statements. That’s just to confirm the information is accurate.
For a detailed guide on the application journey, read What to Expect During a Debt Consolidation Application: Taking the First Step With Confidence.
Step 3: You Get a Decision
If you're approved, you’ll receive a loan offer. This includes:
- How much can you borrow
- The interest rate
- Your monthly repayment
- The length of the loan (the term)
Read through everything carefully. Make sure the repayment fits comfortably into your monthly budget, not just for now but over the full term. If you’re unsure about any of the terms, ask for clarification before moving forward.
MoneyHelper explains how to read loan documents and spot things like early repayment fees or changing interest rates.
Step 4: You Accept the Offer (If You're Happy With It)
If the offer works for you, you can choose to accept it. Once you do, the lender usually starts the process of paying off the debts you listed in your application.
Unlike most lenders, OakbrookOne pays your listed debts off directly, so you don’t have to. Other lenders usually send you the money to handle repayments yourself.
Either way, the goal is that once the old balances are cleared, you're left with one new loan to repay.
Step 5: Your Debts Are Consolidated
This is when things might start to feel simpler. The individual debts you chose to include should now be cleared. You’ll begin making your first monthly repayment on your new debt consolidation loan.
If you had different due dates and payment amounts before, you now have one set date and one set payment. That can help make your budget easier to manage month by month.
To get a clearer picture of how debt consolidation works overall, have a read of our earlier guide: What Is Debt Consolidation? A Guide to Taking Control of Your Finances in 2025.
Step 6: You Begin Your New Repayment Plan
From here, it’s about sticking to your new plan. You’ll make one repayment each month to the same lender. You can set up a direct debit or reminder to help you stay on track.
If something unexpected happens and you’re worried about making a payment, contact your lender as soon as possible. They may be able to help.
What About Your Credit Score?
Applying might cause a small dip in your credit score at first, but clearing old balances and making regular repayments could help it improve over time. It shows you're managing your borrowing in a responsible way.
OakbrookOne uses a soft credit check when you first apply, which means your credit score won't be affected at that stage. If you choose to go ahead and take out the loan, a full credit check will be carried out before approval.
You can use tools from MoneyHelper or ClearScore to check and track your credit score.
Where OakbrookOne Fits In
OakbrookOne is the only lender that fully automates the debt consolidation process, clearing your listed debts directly, so you don’t have to. That means no juggling balances or worrying about missed payments during the switch.
We built OakbrookOne to support people looking for a more flexible, personalised way to consolidate debt.
It offers straightforward terms, no hidden fees, and ongoing support from start to finish. (Representative APR 19.9%).
You can learn more at OakbroookOne.
Final Thoughts
Applying for a debt consolidation loan may feel like a big step, but it can also be a positive move toward more clarity and control.
Once you apply, the journey is usually quite straightforward, from reviewing your offer, to clearing old debts, to starting your new monthly plan.
If you're unsure, or just want to talk it through, free and impartial help is available from organisations like StepChange or MoneyHelper.
Keep in mind: It’s not the right choice for everyone. Consolidating your debts can sometimes mean you’ll repay more overall. Speaking to a debt advice provider can help you weigh up your options before making a decision.