New research by Experian, in partnership with Fair 4 All Finance, reveals that 41 million UK consumers hold credit products, with 83% (34 million) trapped in revolving debt that remains unoptimised. Despite debt consolidation being the top reason consumers seek loans on the Experian Marketplace, many struggle to qualify due to affordability restrictions.
One major challenge in debt consolidation is ‘double counting’—when lenders assess a borrower’s affordability, they often count both the existing debt and the new consolidation loan, even though the loan is meant to repay prior debts. This results in creditworthy applicants being declined, keeping them stuck in a debt cycle.
ReFi™ solves this issue by working directly with lenders and consumers to pay off existing debts at the source. By ensuring funds are used to settle outstanding balances before closing previous accounts, ReFi™ eliminates double counting, giving lenders confidence in approving debt consolidation loans. This streamlined process makes consolidating debt easier and more accessible for consumers.
Bridging the Debt Gap with Smarter Lending Solutions
Experian data shows that only 37% of debt consolidation loan applications are pre-approved on its marketplace, compared to 59% for credit card applications. This gap leaves many consumers without viable debt relief options, increasing the risk of unlicensed lenders and loan sharks—with over 3 million people turning to illegal lenders and more than 10 million borrowing from friends and family.
By integrating ReFi™, Experian will leverage its data-driven technology to offer stronger support for consumers managing debt while helping lenders unlock new, affordable lending opportunities.
Leaders Speak on the Impact of ReFi™
Edu Castro, Managing Director of Experian Consumer Services, emphasized the importance of this innovation:
“Our research shows millions are stuck in a revolving debt trap due to systemic double counting. ReFi™’s technology is a game-changer, helping consumers access consolidation loans that can save them money and speed up debt repayment.”
Jake Ranson, CEO of Paylink, highlighted the impact of the integration:
“ReFi™ has already helped thousands reduce their monthly payments and interest costs. Becoming part of Experian allows us to scale our impact, drive innovation, and create better financial outcomes for both lenders and borrowers.”
Empowering Smarter Borrowing & Lending
Experian’s acquisition of ReFi™ aligns with its mission to empower consumers and support responsible lending decisions. By tackling affordability barriers head-on, Experian is making debt consolidation simpler, smarter, and more accessible to millions across the UK.
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