Debt Consolidation Loan

Debt Consolidation Loan

With our debt consolidation loan, you could roll multiple repayments into one monthly repayment, helping you save money and manage your outgoings.

Our debt consolidation loan in a nutshell

A consolidation loan can be used to pay off multiple credit cards, store cards, overdrafts and other personal loans. This helps simplify debt by keeping it all in one easy and manageable place.

You may also use a debt consolidation loan to pay off existing credit you are currently repaying that has a higher APR than what we charge.

A consolidation loan can be used to pay off multiple credit cards, store cards, overdrafts and other personal loans. This helps simplify debt by keeping it all in one easy and manageable place.

You may also use a debt consolidation loan to pay off existing credit you are currently repaying that has a higher APR than what we charge.

A consolidation loan can be used to pay off multiple credit cards, store cards, overdrafts and other personal loans. This helps simplify debt by keeping it all in one easy and manageable place.

You may also use a debt consolidation loan to pay off existing credit you are currently repaying that has a higher APR than what we charge.

As is the case with most loans, if you don’t keep up with your repayments throughout the term of the loan, then it can negatively affect your credit score. That said, if you decide to switch your existing debt into one monthly repayment, you may find it easier to stay on top of your finances.

Regularly repaying a debt consolidation loan (on time) could help improve your credit score in time.

We offer loans from £500 to £25,000. The amount you can borrow is dependent on your personal circumstances. We assess your personal circumstances through a credit check as well as other affordability checks so we can make an informed decision.

The repayment period for our loans is dependent on the amount you are borrowing and loan purpose. The maximum period of time that you can repay your debt consolidation loan is 72 months. The minimum repayment period is 12 months.

Unlike other lenders, our rates are tiered based on the amount you are borrowing. Meaning, you will know exactly what rate you would be charged before applying. Our rates for our debt consolidation loan are as follows:

  • Borrow: £500 – £4,999
    • APR = 13.5%
  • Borrow: £5,000 – £7,999
    • APR = 9.3%
  • Borrow: £8,000 – £14,999
    • APR = 8.2%
  • Borrow: £15,000 – £25,000
    • APR = 8%

To view what rate you’d be charged, scroll down to our loan calculator or click here.

Repayments for a debt consolidation loan may be made by payroll deduction where the facility exists, otherwise by Direct Debit. To see if your employer has payroll deduction set up with ourselves, click here.

Yes, it is our policy to perform a credit search with every loan application. This is to help ensure we are lending responsibly and protecting the interests of the members who save with us, however, the approval decision does not rely solely upon your credit score. All our loan applications are assessed by considering income and expenditure, level of debt and ability to repay.

There are no set up fees or hidden costs for our debt consolidation loan.

There are no charges or penalties for early (in full or part) repayment. If you wish, you can pay off part of your loan with a lump sum. Your monthly repayments will stay the same, but the term of the loan will be reduced and the total amount of interest paid reduced. You also have the option to overpay your loan. Either way, there are no penalties.

The APR of your loan is fixed for the duration of the term.

You are more likely to be accepted for a Personal Loan if:

  • You are aged 18 or over, and
  • Have a regular source of income

You are less likely to be accepted if you:

  • Cannot prove a regular source of income
  • Can’t afford the loan repayments on the amount you apply for
  • Have credit in arrears, defaults or an outstanding CCJ
  • If you have previously defaulted on a loan with us

We’ll make a decision on whether to offer you a loan based on your personal circumstances.

We regret that we are unable to offer you a loan if are insolvent at the time of applying or have been discharged from insolvency less than 12 months ago.

*Meeting these criteria does not guarantee acceptance.

If you are already a member, you can apply for a loan via our online banking or mobile app. Alternatively, you can apply over the phone by calling 0121 700 1222, where a member of our team will be happy to talk you through the process.

If you are not already a member, but you would like to join and borrow in one convenient application form, please click here.

If you do not qualify for our Personal Loan we may offer you one of our other products, such as the Credit Builder or Emergency Loan.

Calculate your repayments

On an assumed loan amount of £5,000.00 over 36 months. Representative 9.3% APR. Total amount payable £5,749.20 of which £749.20 is interest. 36 monthly repayments of £159.70. Rates from 8% APR to a maximum of 13.5% APR. Loan terms from 12 to 96 months. Loans subject to standard credit checks and proof of identity. Loans are offered subject to status and conditions to members aged 18 or over. Written quotations for loans available on request. Under the Distance Marketing Directive, you have the right to cancel your loan within 14 days of completion by repaying all funds borrowed plus any interest that has accrued. *Life cover is offered subject to conditions including a six month pre-existing limitation.

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