How can I get a Debt Consolidation LoanWhere can I get a debt consolidation loan?
In order to make an application for a debt consolidation loan, you must have at least the equivalent of two PLUS 5 per month loan repayment costs (the required minimum) in your equity portfolio. The members must have made at least one deposit per month or four weeks into their saving accounts before they can submit an application.
The members must not be insolvent, have a Trust Instrument, DAS, IVA or DRO and must fulfil the admission requirements for repayment of the loan. Debt consolidation loans are developed to help members mitigate the strain of multi-debt. Claimants for a debt consolidation loan must keep a sums of at least two monthly loan repayment PLUS 5 on their regular savings account - AND still save a min. of 10 per cent per year.
Be able to pay the principal payments required for the debt consolidation loan. The loan refunds are debited from your saving bank on the first of each year. The first loan redemption is subtracted on the first of the following months after the loan processing date. Borrower payments cannot be postponed and redemption periods are not allowed.
Note: Some members do NOT have an annuity contract - they participate in a free service of the cooperative. What does my loan costs? The £500.00 rental fee over 6 month period is £87.77/month. Interest and principal payments may differ depending on the loan amount and state.
In order to request a debt consolidation loan on-line, register as a member HERE, choose on-line loan application forms - and then choose the debt consolidation loan application form.
Is a debt consolidation loan right for me?
Raising another loan is seldom the answer to a serious debt issue. Actually, a debt consolidation loan only increases the amount you are indebted to (the refinance must pay the current debt plus the interest on the new loan) and extends the payment over a longer term.
These types of loans can be an appropriate option in certain situations, such as the consolidation of a relatively small amount of debt (usually many smaller debt with high interest rate, such as debit cards), which will reduce the amount of money repayable each month to an amount that allows you to cover your cost of monthly living and still repay the debt within a fair period of time.
Yet, if you have a serious debt issue, then there are alternate solutions that will actually decrease the amount you owe yourself (see IVA, debt relief arrangement and bankruptcy). When considering securitizing a debt consolidation loan against your home, you should always consider remote margining first, as the conditions of repayments are often more favorable.
For more information on debt consolidation and whether it is appropriate for your particular circumstances, see our Debt Consolidation section. When you need to talkto someone about debt consolidation or want to review the options, please call 0800 043 40 50 to talkto a consultant.