What to Expect During a Debt Consolidation Application: Taking the First Step With Confidence
12th June 2025
If you’re thinking about combining several debts into one loan, understanding the process may help you feel more in control. This guide walks through what may happen, from checking your debts to starting your first repayment.
If you’re still getting to know what debt consolidation means, you may want to read our guide here.
Step 1: Review Your Current Debts
Before applying, it helps to list out what you currently owe. This could include:
- Credit card balances
- Store or personal loans
Make a note of how much is left to repay, and who the lender is. You don’t need a spreadsheet, a pen and paper could do. This may help you decide what you’d like to consolidate.
You can check your full credit report for free through ClearScore, Credit Karma, or Experian if you're unsure what accounts are still active.
Step 2: Decide What Matters Most to You
Before choosing a loan, it may help to think about your goals. For example:
- Would having one fixed payment each month be easier to plan around?
- Are you looking to move away from higher-interest borrowing?
- Would it help to have a set date when your borrowing could be fully repaid?
There’s no right or wrong answer here. It depends on what would support your situation best.
Step 3: Soft Eligibility Check
Many lenders offer a “soft check” to show if you’re likely to be accepted, without affecting your credit score. This might involve answering a few questions about:
- Your income
- Your current debts
- The amount you’d like to borrow
This stage isn’t a guarantee, but it could give you a clearer idea of your options.
National Debtline and StepChange both provide tools to help you work out whether debt consolidation could suit your circumstances.
Step 4: Complete the Application
If you're comfortable moving forward, you’ll be asked to complete a full application. This may take around 10–15 minutes and usually includes:
- Your name, address, and employment status
- Details about your income and outgoings
- The debts you’d like to consolidate
Some lenders may allow you to select which debts you want to combine, while others may offer an all-in-one approach. If you don’t have every detail to hand, it’s okay to pause and come back to it.
Step 5: Affordability Check
The next step usually involves a check to see if the loan is affordable for you. Lenders may ask about:
- Your rent or mortgage
- Utility bills and other regular expenses
- Any dependants you support (like children or a partner)
This part of the process isn’t there to catch you out. It’s designed to make sure that the new loan could be repaid comfortably, alongside your usual day-to-day costs.
StepChange has a helpful budgeting tool at stepchange.org that can help you prepare for this part.
Step 6: Reviewing Your Offer
If your application is approved, you’ll receive a loan offer. This usually includes:
- The loan amount
- Interest rate and loan term
- Your monthly payment
- The total amount payable
You don’t need to accept the offer immediately. Take your time to review it. You could speak to someone you trust or use free advice services to help you decide.
Step 7: Paying Off the Debts
Once accepted, the funds may be used to repay your existing debts directly — or you may be given the money to do this yourself.
After this, you’ll have one loan to repay instead of several. The aim is to make your payments feel easier to manage and more predictable.
Step 8: Making Your First Repayment
Your first repayment will usually be due about a month after the loan starts. You may be able to choose the payment date — for example, after your payday. Setting up a direct debit could help make sure it goes out on time.
If at any point you think you may struggle with a payment, it's best to contact your lender as soon as possible. Many lenders may be able to support you with a temporary plan or flexible options.
Designed for You
OakbrookOne is a dedicated brand from Oakbrook, designed specifically for debt consolidation. It offers customers a way to bring selected debts together into one manageable loan — with clear terms, no hidden fees, and personalised support throughout the process.
If you’re exploring options and want to learn more — at your own pace — you can visit OakbrookOne.
Final Thoughts
Applying for a consolidate debt loan may feel like a big step — but understanding what’s involved could make the process feel more straightforward. From checking your debts to reviewing your loan offer, each stage is there to help you feel informed and supported.
If you decide that consolidation isn’t right just now, that’s completely okay. The most important thing is that you’re taking time to understand your choices.