Updated 14.7.2026
Consolidation loan 2026 – Combine your loans into one
A consolidation loan combines several smaller loans, credit cards and other debts into one cheaper loan. Lower interest costs and one easy monthly installment.
- Combine all loans into one
- Often a lower interest rate
- Easier financial management
- Savings of hundreds of euros
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The calculation is indicative and based on a fixed annuity loan. The final rate and costs are determined based on a personal credit decision.
What is a consolidation loan?
A consolidation loan is a credit with which you pay off several smaller loans and replace them with a single, larger loan. The goal is to reduce total interest costs and simplify monthly payments when several different installments combine into one.
A consolidation loan typically suits when you have several of the following:
- Consumer loans
- Credit card debt
- Quick loans
- Flex credit balances
- Store credits
When is a consolidation loan worth it?
A consolidation loan is worth taking when:
- The new loan's effective annual rate is lower than the average of your current loans
- You can save in total interest costs over the loan period
- You want to simplify finances – one installment instead of many
- You want to lengthen the repayment period – the monthly installment decreases (note: total interest costs may rise)
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Example: how much can you save?
Imagine you have the following loans:
- Consumer loan 8,000 € at 12 % – monthly installment 178 €/m
- Credit card 3,000 € at 18 % – monthly installment 76 €/m
- Quick loan 1,500 € at 24 % – monthly installment 75 €/m
- Total: 12,500 € of debt, monthly installments 329 €/m
Now you take a consolidation loan of 12,500 € at 7.9 % for 7 years (84 months):
- New monthly installment: 195 €/m (save 134 €/m!)
- Total interest cost: ~3,880 €
- Old loans' total interest cost would have been: ~5,200 €
- Savings: about 1,300 €
How does the consolidation loan process work?
- Calculate the current loans' totals – the principal and the remaining amount
- Get an offer for a new loan – the new loan should be larger than the total of existing loans
- Compare the effective annual rate to your current loans
- Take the new loan – the funds are transferred to your account
- Pay off the old loans – use the new loan funds
- Continue with just one installment – simpler money management
Risks to consider
- Longer repayment period = more total interest, even if the monthly installment is lower
- Don't take on more debt after consolidation – otherwise the situation gets worse
- Check the fees of the new loan: opening fee, monthly account fee, possible prepayment charges
Where to get a consolidation loan?
Almost any unsecured consumer loan can be used for consolidation. The most popular options in Finland:
- Morrow Bank – up to 60,000 €, from 5.9 %
- Bluestep Bank – secured consolidation loan, accepts payment defaults
- Bondora – flex credit, can be used for consolidation
Compare the offers in Lainafy.com's loan comparison – the cheapest effective annual rate is the most affordable consolidation loan.
Frequently asked questions
When is a consolidation loan worth taking?
A consolidation loan is worth taking when its effective annual rate is lower than the average of your existing loans, when you want to simplify monthly money management, or when you want to lengthen the repayment period and lower the monthly installment.
Are consolidation loan and consumer loan the same thing?
Essentially yes. Almost any unsecured consumer loan can be used for consolidation. The "consolidation loan" name describes the purpose of use, not a specific product type.
How much do you save with a consolidation loan?
Savings depend on the difference between the old and new interest rates. Typical savings are 500 – 3,000 € over the loan life. With several high-interest credit cards or quick loans, the savings can be even higher.
Do I need a guarantor for a consolidation loan?
Usually not. Most consolidation loans are unsecured. For very large amounts (>50,000 €), some lenders may require security.
How long does it take to get a consolidation loan?
Decision typically the same day, money in your account within 1–3 business days. You can then pay off old loans immediately.
Combine your loans and save in costs
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