Restructuring Loan

If you have multiple loans or credit commitments from one or more providers a restructuring loan can help to simplify your finances and lower your repayments.

Who is this loan for?

This loan is aimed at members who:

  • Have debts of £15,000 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.
  • Do not have a DRO, Debt Management Plan or IVA
  • The monthly repayments on your total debt total more than the repayments for the same amount/term as given in the Quick Calculator.

Before you apply

Restructuring Loans carry a higher rate of interest than our standard car and personal loans, but this rate will be very much lower than the rates on high-cost credit. So, less of your regular repayment has to cover interest, and more repays the principal, making the overall debt more manageable and affordable.

You could even find your regular repayment, on the higher total loan, actually reduces, 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 it may not be in your best interest to take a Restructuring Loan, please contact us before applying.

Since the Restructuring Loan is assessed on the basis that the existing high-cost debt is actually repaid from the new loan, you will be required to provide evidence (e.g. a closing statement) that this has been done. To ensure that existing debt is repaid the new loan will be held in a disbursal account and released in instalments one or two creditors at a time.

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 do not comply with these conditions – that is, 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, and reserve the right to raise the interest rate to 19% APR to reflect that, therefore it will be this rate and not the discounted rate that is stated on your loan agreement.

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

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