GWCU launches consolidation lending for members with multiple debts.
Great Western Credit Union (GWCU) is launching a brand new money saving pilot programme called Consolidation Loan. With household debt in the United Kingdom on the rise and the average household debt-to-income ratio expected to reach 136% in 2029, the debt consolidation loan initiative provides an affordable alternative credit option from a responsible lender and helps combine multiple debts into one.
The pilot offers loans from £500 to £15,000 with a starting interest rate of 13.9%. Similarly to the existing personal loan offered by GWCU, there are no setup fees or charges for paying off your loan early. While the programme is initially set to run for a limited time, it is important to note that any loans applied for through it are not tied to the length of the pilot.
As a result of the cost-of-living crisis, the debt-to-income ratios have increased particularly among middle income households. One in five people close to the middle of the income distribution struggle to afford food and other essentials, despite having household incomes as high as £60,000 a year. This has led to more families having to choose between saving for the future and maintaining a decent living standard today, and many are relying heavily on borrowing to manage their finances - while spending a significant chunk of their monthly income on debt repayments to different lenders. Research shows that a growing number of people are using debt consolidation to bring down monthly outgoings and manage their debt better, with 41% of people who searched for a loan wanting to consolidate debt.
James Berry, CEO of Great Western Credit Union, said:
“Consolidation loans are just one more way we can improve people's financial wellbeing - whether that is through offering better interest rates, lower repayment amounts, or better repayment methods. This is a way for individuals and households to streamline their finances and combine their loans into one easy monthly, fortnightly or weekly payment. Our dedicated lending team will look at each applicant’s situation to see if debt consolidation is a good fit for them, and tell them outright what the best plan for action is based on their specific circumstances.”
“Consolidation loans can bring relief. Debt consolidation means borrowing one lump sum to pay off multiple other debts, essentially offering a way to merge multiple loans into one - an attractive choice for people with fairly good credit scores, who are looking to combine their credits into one, more easily manageable payment. By taking out a loan to consolidate your other debts, you can simplify your finances and improve your credit score, with potential for a lower interest rate and lower monthly repayment amount. As an ethical lender dedicated to helping people have a healthier financial outlook, we have helped thousands of happy customers in the South West make their debts more manageable.”
Applying for a loan with GWCU is quick and easy, with the process taking just minutes to complete online. Their commitment to transparent pricing acts as a guarantee that there will be no surprising hidden costs; only a sense of certainty. GWCU also offers other competitive services, such as their Cash ISA, offering 3.5% AER on for tax-free savings, and the Money@Work scheme, an employee partnership program which allows employers to empower their employees with access to affordable loans and simple savings through their salary. All money saved through GWCU is used to offer fair financial services to local people across the South West. You can access the loan on the GWCU website.
