At V12 Personal Finance, we believe one of the best gifts is peace of mind. If you've been juggling debt from credit card bills, overdrafts, and more, restructuring your debt might be something to think about and could help you relax and enjoy the best time of the year.

Christmas is getting more expensive

It's official! To survive the festive period, December budgets are getting bigger. Retail Week predicts at least 60% of people will match last year's high festive spending, with many predicted to shell out even more. Spending more at Christmas means many people who are generally managing financially, find their day-to-day finances firmly under the spotlight.

And it's not getting easier. 

With inflation still near 3.8% (and food prices up 4.9%) as of July 2025, festive shopping feels pricier than ever.

If you're already paying off bills - credit card balances, smaller loans, catalogues, and overdrafts - any added spend can seem overwhelming and set you on a cycle of debt that can seem hard to get out of. 

There are options! Debt consolidation is a popular reason to take out a personal loan, with our most recent data telling us 35% of V12 Personal Finance customers who apply for a personal loan are coming to us to find a way to restructure their debts into one manageable payment. This helps them keep track of outgoings and lets them get on with what matters most.

Why debt feels heavier at Christmas

It's not just about extra spending; it's the emotional weight.

So many of us feel it. You spend when you shouldn't on those you love, and you try to go the extra mile. We've all been there.

It can be a tough time, and it's not getting easier. According to the FCA, over 10.9 million adults in the UK are now struggling to keep up with bills and credit repayments-up from 7.8 million in May 2022. The festive season can make that burden feel even heavier.

That's why at V12 Personal Finance, through our trusted panel of loan providers, and our simple loan eligibility check that doesn't harm your credit score, we help thousands of people restructure their debts, minimising stress, and simplifying outgoings through debt consolidation. 

How debt consolidation works

Debt consolidation enables you to merge multiple debts into one payment through a personal loan.

The benefits:

You'll only deal with one lender instead of many. Less stress, a lot less hassle.
Depending on your agreement, you could secure a lower interest rate than with a credit card.
It simplifies budgeting with a fixed payment amount, one direct debit and one due date.

Things to consider before taking out a loan

Restructuring your debt isn't a magic bullet. But if you consider everything carefully and feel it's right for you, it could help.

Here's what you should remember:
•    It's new credit. You're borrowing again to pay off your other debts, so check for setup fees, repayment terms, and affordability to ensure it's right for you.   
•    By extending the term of your loan it could mean paying more overall. Check all the terms to understand the full cost of the loan. 
•    Only borrow what you can afford. 
•    Beware of unauthorised advice. Always work with FCA-authorised services; unauthorised debt advice might be misleading and won't be covered by the Financial Ombudsman if things go wrong.
•    Know your rights. FCA rules require lenders to support you if you face persistent credit card debt; providers must notify you, suggest repayment options, and help find a way forward.

There are two types of loans you can apply for:
Secured loan
Unsecured loan

A secured loan allows you to borrow up to £500,000 whilst using your own property as collateral. Secured loans usually have longer repayment periods which could lead to a bigger cost over time depending on the term and interest rates.

Unsecured loans are more commonly chosen by our customers who want to consolidate their debt. Unsecured loans don't require any collateral and can be quicker to process, with money in your account often in as little as two hours. 

You can opt for either an unsecured or secured loan for debt consolidation. But for larger amounts, traditionally over £25,000-a secured loan might be the only option. Our customer data shows the average loan size requested for debt consolidation is £13,908. 

It's important to remember that with any secured loan, collateral such as your home will need to be put up against the loan. Therefore, your home may be repossessed if you default on a loan secured against it. Only borrow what you can afford to repay. All loans are subject to status and affordability checks. If you agree with a lender, they will undergo a hard check on your financial history.     

Check Your Loan Eligibility

Give yourself the gift of peace of mind

Let's be honest: what really matters at Christmas isn't the swirl of wrapping paper or the perfect gift, it's being present with the people you love. If debt worries are stealing your sparkle, consolidating carefully could help you relax into the magic of the season.

At V12 Personal Finance, we're not here to pressure you, we're here to support, with clear, responsible options that treat you like a person, not just a credit score.

Want to explore whether a consolidation loan fits your festive financial plans?

It's important to carefully consider the type of loan that best suits your needs as well as a term and amount that is suitable and affordable.
V12 Retail Finance Limited is registered in England and Wales 4585692. Authorised and regulated by the Financial Conduct Authority. Registration number: 679653. Registered office: Yorke House, Arleston Way, Solihull, B90 4LH Correspondence address: 25-26 Neptune Court, Vanguard Way, Cardiff, CF24 5PJ. V12 Personal Finance is a trading name of V12 Retail Finance Limited.

V12 Personal Finance is a credit broker, not a lender. V12 Personal Finance introduces you to a limited range of brokers or lenders who may offer you a loan. V12 Personal Finance does not work with the whole of the lending market, meaning other loans may be available to you elsewhere.

V12 Personal Finance does not give you any recommendation or advice. V12 Personal Finance acts for itself and is not impartial. It does not act for you or for the lenders or brokers it works with.

V12 Personal Finance receives a fixed or percentage commission payment from the lender or broker if you take out a loan. The commission it receives varies depending on the product, loan amount or APR. Loan offers (if available) are shown in this order: unsecured loans followed by secured loans, ranked by the closest matched loan amount, term and lowest APR respectively. Before completing your application, you will be shown the commission arrangement between V12 Personal Finance and the lender or broker you have selected.

Credit is subject to status. You must be UK resident aged 18 and over, with a regular provable income. If you are a homeowner, V12 Personal Finance may provide you with details of loans secured against your home. Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.

To make things easier, we'll share the information (including your personal details) that you confirm and provided during this eligibility check with our panel of lenders or brokers. We do this so that they can provide you with a quote for the loan you have requested and to save you from having to tell them again. Details of our panel can be found here.

You can read more about how we use your personal data in our privacy statement.  

Warning: late payment can cause serious money problems.

For help, go to moneyhelper.org.uk