Consolidating debt without paying more
A consolidation loan almost always lowers the monthly cost. That is not the same as making it cheaper.
Updated 2026-09-05
Consolidating pays off when the new rate is lower than the weighted rate on your current credits and you do not extend the term. The commonest trap is a monthly cost that falls by 40% while the total interest cost rises, because the debt is spread over ten years instead of three.
Work out the weighted rate first
With SEK 45,000 at 21.9%, SEK 28,000 at 19.5% and SEK 15,000 at 24%, your weighted rate is around 21.4%. A consolidation loan at 12% is then a clear improvement, provided you keep roughly the same repayment period.
Card credit and quick loans at 20–25% are almost always worth settling. An existing personal loan at 7% rarely is; you risk pulling a cheap loan into a dearer one.
The term is where the money goes
The same SEK 88,000 at 12% costs about SEK 17,000 in interest over three years and just over SEK 60,000 over ten. The monthly cost falls from SEK 2,900 to SEK 1,260, which looks like relief every month and is a loss overall.
If you extend the term for a real reason, the current payment does not work, that is a legitimate decision. But make it deliberately, and overpay when you can. An unsecured loan may always be repaid early without penalty.
Check the old credits are actually settled
Some lenders pay off your existing credits directly; others pay the money to you and trust you to do it. The second is where it goes wrong: the money arrives, some goes elsewhere, and you are left with both the old and the new loan.
Cancel the credits once they are settled, too. A card with a zero balance but a SEK 60,000 limit still counts as debt at the next affordability check.
Common questions
Does consolidating affect my credit rating?
In the short term the application triggers a credit check, which lowers it slightly. Over time it often improves, because the number of credits falls and the payment history gets simpler.
Can I consolidate with a betalningsanmärkning?
Yes, but the choice is narrower and the rate higher. Several lenders will still consider you, see the guide on borrowing with a betalningsanmärkning.
Do card debts count as loans?
Yes. Revolving credit and card debt are often the most expensive credits a household holds, and the most worthwhile to settle.