Experian Research Highlights Debt Consolidation Knowledge Gap as Households Miss Opportunities to Reduce Interest Costs

Experian Research Highlights Debt Consolidation Knowledge Gap as Households Miss Opportunities to Reduce Interest Costs

(IN BRIEF) Experian has released new research during Credit Awareness Week showing that many consumers lack a clear understanding of debt consolidation, despite its potential to simplify repayments and reduce interest costs. The study found that 65 percent of people with debt say it affects their ability to make important financial decisions, while only 17 percent feel confident in their knowledge of consolidation options. Experian’s Financial Inclusion Whitepaper estimates that individuals could save an average of £1,257 per year by consolidating unoptimised debt, and wider adoption of consolidation technologies could unlock £15.1 billion in additional household spending and generate £2.1 billion in savings annually. The company is encouraging the financial services sector to increase awareness and accessibility of consolidation tools. Technologies such as Experian’s ReFi solution are already helping streamline the process by settling debts directly with creditors and improving approval rates for consolidation loans. With support from organizations such as Fair4All Finance, which has committed £1 million to encourage lenders to trial the technology, the initiative aims to expand access to responsible credit and support households facing financial pressures.

(PRESS RELEASE) LONDON, 16-Mar-2026 — /EuropaWire/ — Experian has released new research* during Credit Awareness Week highlighting a significant knowledge gap around debt consolidation, which may be preventing many households from reducing interest costs and gaining better control of their finances.

The research shows that debt has a strong impact on financial decision-making. Around 65 percent of people currently managing debt report that it limits their ability to make important financial choices, such as building savings or committing to major purchases. Despite this, only 17 percent say they feel confident that they understand debt consolidation well, even though the approach can simplify repayments and potentially lower borrowing costs.

Experian’s latest Financial Inclusion Whitepaper suggests that individuals could save an average of £1,257 per year in interest payments by consolidating unoptimised debt. The study also indicates that wider adoption of consolidation technologies could deliver broader economic benefits, potentially unlocking £15.1 billion in household spending and creating an additional £2.1 billion in savings each year.

During Credit Awareness Week, Experian is encouraging the financial services industry to strengthen awareness and adoption of debt consolidation tools that can support consumers managing multiple borrowing commitments. By combining several debts into a single monthly repayment, consolidation can reduce the complexity associated with juggling multiple accounts.

Survey respondents reported several common challenges when managing debt, including difficulties controlling cash flow, keeping track of payment deadlines, remembering multiple account logins and the risk of missing payments. Consolidation solutions aim to address these issues by simplifying repayment structures.

Technology-driven solutions are already emerging to make the consolidation process more straightforward. Experian’s ReFi technology, for instance, enables existing debts to be paid off directly with creditors and eliminates the issue of “double counting,” ensuring lenders evaluate only the new consolidated loan when assessing applications.

The ReFi solution has already been used to settle more than £70 million in consumer debt and has helped some lenders achieve a 68 percent increase in successful debt consolidation applications over the past year. Data from the Experian Marketplace also indicates rising consumer interest, with one in three loan searches now related to consolidation and demand for balance transfer credit cards increasing by 8.5 percent during the past year**.

Edu Castro, Managing Director of Experian Consumer Services UK and Ireland, said the findings demonstrate how important transparency and confidence are when individuals are trying to manage debt. He noted that improving understanding of consolidation options and making them easier to access will be important steps in helping people make informed financial decisions. Castro added that technologies such as ReFi already help consumers access affordable credit and that further progress will be driven through the use of data and artificial intelligence to deliver better outcomes.

Kate Pender, Chief Executive Officer of Fair4All Finance, said managing multiple higher-cost debts can be overwhelming and may prevent people from achieving financial stability. She explained that consolidation lending can significantly reduce interest payments while simplifying finances through a single monthly repayment.

Pender also emphasized the importance of ensuring such financial products remain accessible to people who need them most. Fair4All Finance is supporting lenders in trials of consolidation technology and has made £1 million available through Experian to help accelerate the adoption of solutions that assist financially vulnerable households in consolidating debt.

Now in its ninth year, Credit Awareness Week—delivered in partnership with Credit Strategy—continues to promote financial inclusion and improve consumer understanding of credit. As part of the week’s activities, Experian will participate in the Credit Strategy Parliamentary Reception at the House of Commons, where it will share insights on innovations in debt consolidation and engage with industry and regulatory leaders on improving access to finance.

ENDS

Notes to Editors:

*All figures, unless otherwise stated, are from YouGov Plc.  Total sample size was 2104 adults. Fieldwork was undertaken between 12th – 13th February 2026.  The survey was carried out online. The figures have been weighted and are representative of all UK adults (aged 18+).

**Data referenced is from Experian’s bureau analysing debt consolidation loan searches on the Experian Marketplace in January 2026.

Media contact:

Vicki Cook, Head of Corporate and B2B PR, Experian UK&I

Tel: +44 7977 798 173 / Email: vicki.cook@experian.com

About Experian:

Experian is a global data and technology company, powering opportunities for people and businesses around the world. We help to redefine lending practices, uncover and prevent fraud, simplify healthcare, deliver digital marketing solutions, and gain deeper insights into the automotive market, all using our unique combination of data, analytics, and software. We also assist millions of people to realise their financial goals and help them to save time and money.

We operate across a range of markets, from financial services to healthcare, automotive, agrifinance, insurance, and many more industry segments.

We invest in talented people and new advanced technologies to unlock the power of data and to innovate. A FTSE 100 Index company listed on the London Stock Exchange (EXPN), we have a team of 25,200 people across 33 countries. Our corporate headquarters are in Dublin, Ireland. Learn more at experianplc.com.

SOURCE: Experian