Co-op- employee Jim had got into financial difficulties and so found it impossible to save for Christmas with his bank due to his other commitments. A debt consolidation loan from the Credit Union helped him get far more than a savings account as he explains:
“After a difficult separation from the mother of my children, I ended up accruing substantial debts. I had to turn to my mother as I needed guarantor on a loan due to my debts damaging my credit file.
“The initial £5,000 loan relieved some pressure on my finances, but I then had to pay a very high interest rate of 49.9% APR. This meant the loan would cost me over £11,700 in total. My monthly payment was £245 for 4 years, leaving me with little to spend on my children.
“Thankfully a friend told me about The Co-op Credit Union. So, I approached them, explained my circumstances and asked for help. I managed to get a debt consolidation loan on my guarantor loan plus, an additional smaller debt of £500. Which now makes my monthly outgoings better off by £45. My repayments are taken by a payroll deduction (which is so much easier to manage), and the loan will clear over 12 months earlier, helping me save over £5,500 in interest repayments.
“I’ve even opened a Christmas saver account with the credit union to make sure I have some savings ready for my children for Christmas”.
If you have outstanding debts with one or more lenders, a consolidation loan could potentially save you money on interest repayments and clear your debts into one manageable monthly payment.