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...

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.