Innovative Debt Consolidation Technology Could Save Brits £17.2bn in Unnecessary Interest Payments

Millions of UK consumers could save an average of £1,257 each year by consolidating unoptimised debt, according to new Experian research. As the UK braces for the Autumn Budget this week and with Christmas spending adding seasonal pressure to household budgets, new research reveals that wider adoption of debt consolidation technology could unlock £15.1 billion in household spending and generate £2.1 billion in extra savings annually through reduced interest costs.  

Currently, 83% of UK borrowers (34 million people) carry revolving credit that isn’t optimised – meaning they’re paying more interest than necessary. Having multiple lines to manage and budget for increases stress, probability of missing payments and for some – entering a debt spiral. Debt consolidation could reduce monthly outgoings, simplify repayments, and help people regain financial control. Debt consolidation is also the most common reason people search for loans on Experian’s Marketplace, showing just how many people could benefit from better support. 

To address this, Experian integrated ReFi™, an innovative debt consolidation technology, into its Marketplace. Unlike traditional consolidation loans, ReFi™ generates final settlement balances and pays off existing debts directly with creditors, so lenders assess only the new loan – removing the issue of ‘double counting’ and enabling them to make offers to customers they previously would have declined – improving access to affordable credit. Some lenders have seen a 68% increase in successful debt consolidation loan applications as a result of ReFi technology, highlighting the scale of the positive impact so far. 

For consumers, this means real financial benefits: an average annual saving of £1,257 per person on interest charges, potentially lower monthly payments and reduced financial stress. On a wider scale, more than £15 billion could be added to the UK economy through the reduction of these interest charges if there’s widespread adoption of ReFi™. At the same time, it could potentially boost household savings by £2.1 billion per year. 

 
Experian’s partnership with Fair4All Finance, backed by a £1million grant, will expand access to ReFi™ and affordable credit. The initiative aims to reach 10,000 borrowers initially, saving them over £50 million in unnecessary interest charges.   

Edu Castro, Managing Director of Experian Consumer Services UK&I said “We’re committed to helping people take control of their finances. Technologies like ReFi™ make it possible for millions to pay less interest, simplify repayments, and ease financial pressure. Our partnership with Fair4All Finance also strengthens this mission, enabling us to reach more people who need affordable credit and real support.” 

Kate Pender, CEO of Fair4All Finance said: “We’re delighted to be working with Experian on their ReFi ™ technology and also with the lenders who use it to reach people in financially vulnerable circumstances. With millions of people financially excluded in the UK, fair and affordable credit is a vital safety net that many can’t access.   

Debt consolidation lending in particular is a great solution for the cost of living crisis. It can reduce people’s monthly outgoings and also cut the amount of interest they have to pay overall. This direct settlement technology will ensure more people are able to access a consolidation loan, improve their creditworthiness and steer clear of problem debt.”  

Since its launch on the Experian Marketplace in early 2025, ReFi™ has already helped thousands of consumers save thousands of pounds in interest and reduce monthly outgoings.  

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