Debt Consolidation Loans

If you have multiple loans or credit commitments, take a Consolidation Loan to simplify your finances and lower your repayments.

This is where we combine your loans into one loan.  If you have several loans or credit commitments, a consolidation loan can help to take control of your finances and in most cases reduce your repayments.

This loan might be right for you if you...

have debts of £20,000 or below (though we do consider loans up to £25,000 in some cases)
only pay the minimum due on your credit card on a regular basis and don’t see this changing
are up-to-date with credit repayments but have to economise on essential items to maintain this, or
have recently fallen behind with some repayments and don’t have the means to remedy this.
have not reached the stage of having or needing a Debt Relief Order, Debt Management Plan or Individual Voluntary Arrangement and/or the monthly repayments on your total debt added together come to more than the repayments for the same amount/term as given in the Quick Calculator.

What will it cost me to have a consolidation loan from you?

What do I need to know before I apply

We charge slightly more for our Consolidation Loans than our standard Member loan, but this rate will be very much lower than the rates on credit cards, overdrafts and many other forms of credit, so less of your regular repayment goes on covering interest.  That means that a larger amount repays the principal loan, making the overall debt more manageable and affordable.

Is it for me? If your existing credit is at a very high interest, you may even find your regular repayment on the higher total loan actually goes down if you’ve been paying very high-interest rates.

If you have an active Debt Management Plan, IVA or DRO or the interest on your accounts is frozen, a Consolidation Loan might not be best for you so do contact us before applying.

What would you need from me? The Consolidation Loan is assessed on the basis that the existing high-cost debt is actually repaid from the new loan.  That means you need to provide evidence that this has been done, for example a “closing statement”. To ensure that existing debt is repaid the new loan will be held in what is called a “disbursal account” and released in instalments one or two creditors at a time.

Can I borrow elsewhere as well? We also expect you not to take on significant new consumer debt, but instead to start regular saving – around £20 a month – with Churches Mutual, in parallel with repaying the loan.

If you don’t meet these conditions – if you fail to repay the existing debt, leaving your total debt much higher, and by our tests unaffordable – we will have to treat the loan as high risk.  That means we reserve the right to raise the interest rate to 19% APR to reflect that. And your loan would then be at this rate and not the discounted rate stated on your loan agreement.

I’m not a Churches Mutual member – can I still apply?

If you are not an existing member of Churches Mutual please check your eligibility before completing the application form.

Get in touch

For Debt Consolidation Loan Enquiries please fill in the form below. Or call us on 01452 930 360

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Why Churches Mutual?

Our members borrow money with us because we offer some key benefits compared with most other providers.

Competitive – compare our personal loan rate to other similar products
Manageable – affordable repayments and clear start and end dates
Convenient – repayment direct from your salary or bank
Unambiguous – our advertised rate is what we lend at

David's Story

I first joined Churches Mutual credit
union in May 2018.

I have found them to be an excellent organisation, with polite, helpful, accessible staff. I have been impressed by the way they “have gone the extra mile" to support me during difficult financial circumstances with humanity and understanding.

I was unable to obtain a loan elsewhere, but Churches Mutual took me on board and enabled the purchase of a much-needed car. Their willingness to reduce the repayments when I was unable to meet them and then gradually increase them when I could said everything about the ethical standards of this organisation.

I have already made a commitment – which I am fulfilling – to save with Churches Mutual to help support clergy or church workers who need a loan.

If you are looking for ethical, mutually supportive finance, I have no hesitation in recommending Churches Mutual.

David Standen

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