Just over six months ago, Great Western Credit Union (GWCU) partnered with Fair4All Finance to launch the debt consolidation loan, designed to help individuals take control of their finances by merging multiple debts into one affordable repayment.
The ongoing cost-of-living crisis continues to put financial strain on households across the UK, forcing many to rely on credit more than ever. In October 2024, 20% of adults reported having to borrow more or use credit more than usual compared to a year ago. With rising costs making it harder to keep up with multiple repayments, access to fair and affordable credit has never been more crucial.
The impact so far
Since launching, our debt consolidation loan has already made a tangible difference in the lives of hundreds of members across the South West:
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172 loans issued – total value £1.2m
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£156,000 saved in interest for our members
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Nearly 470 debts cleared, helping borrowers regain control
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Average loan of £5,630, easing financial strain
The aim of this pilot was to provide a financial lifeline to those struggling with multiple high-interest debts. With 62% of UK adults carrying some form of debt—and 16% owing at least £20,000—many people are facing mounting financial pressure. By offering a responsible and affordable consolidation loan, we have helped members lower their monthly repayments, reduce overall interest costs, and take back control of their financial wellbeing.
A partnership with purpose
The success of this initiative would not have been possible without the support of Fair4All Finance, whose £1.3m financial package, including a £100,000 partial bad debt guarantee, has allowed us to extend this product to those who would otherwise struggle to access affordable credit. By reducing concerns around bad debt and affordability, we’ve been able to approve more consolidation loan applications, ensuring that those most in need receive the support they deserve.
James Berry, CEO of Great Western Credit Union, said:
‘The success of this pilot demonstrates the real impact that fair and affordable credit can have on people’s lives. In just six months, we’ve helped hundreds of members reduce their financial burden, save on interest, and take control of their repayments. This is exactly why we launched the debt consolidation loan, so that people who may have felt trapped by multiple debts could find a way forward. We’re proud to see the difference this is making, and we’re committed to continuing to provide ethical and accessible lending options that support our members’ financial wellbeing in the long term’
We’re eager to continue supporting our members, learning from our results, and strengthening our commitment to financial inclusion. We believe that debt consolidation, when done right, can be a powerful tool to help people manage their finances more effectively and reduce stress.
If you or someone you know is struggling with multiple debts, find out how our debt consolidation loan could help.
