Debt Consolidation Loan


One of the ways we help our members is by consolidating their existing debts. We can help to consolidate anything from credit cards to store cards – the aim of this is to put our members into a better financial position and hopefully help them save money and create more disposable income.

If you have been a member of the Credit Union for under two years, the maximum amount you can apply to borrow for debt consolidation purposes is £15,000.

Please be aware if you consolidate your existing Member Loan you may be paying a higher interest rate, which may cost you more over the term of the loan. 

Debt Consolidation Loan Calculator

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Interest Rates for the Debt Consolidation Loan 

Amount borrowed APR
Under £5,000 9.9% APR
£5,000 - £25,000 8.9% APR

 

Key Product Information 

Interest charging information Interest rate fixed for the life of the loan. Interest accrues daily and is charged on a monthly basis.
Repayment information You can repay your loan by payroll deduction or Direct Debit. To see if we offer payroll deduction in your force click here.
Repayment period The maximum loan term is 90 months and must be repaid by your 70th birthday.
Amount of loan available You can borrow up to £25,000 maximum across all unsecured lending with us. If you have been a member of the Credit Union for less than two years, the maximum amount you can apply for is £15,000 for debt consolidation purposes.
Application/Arrangement Fee No application or arrangement fees apply.
Others Fees None.
Default Fees None.
Early settlement You can repay the loan at any time fully or partially without charge.

All loans are subject to affordability and our lending criteria.

 

What is debt consolidation?

Debt consolidation is the process of combining your existing debts into a single loan. This can be done by applying for a new loan and using the funds to repay and close other financial accounts (e.g. credit cards, credit agreements, loans etc) if you choose to. The process of consolidating debt and having it all in one place means that you are charged one interest rate, have one repayment term and hopefully have more disposable income.

 

Is debt consolidation right for me?

As we don't offer financial advice, we are unable to advise you if debt consolidation is the right thing for you. We can however, explain the process and how it may or may not benefit you. If you feel you could benefit from financial advice, you may wish to speak to an independent financial adviser. Debt consolidation could help members who are juggling numerous repayments and would find it easier to manage a single repayment. Another benefit is that by consolidating debt, it could reduce the rate of interest you are currently being charged.

Here at No1 CopperPot, we pride ourselves on offering clear products. With our loans, everyone gets charged the advertised interest rate regardless of credit score, so you'll be able to find out exactly what your repayments would be if accepted. You can do this by using our loan calculator before you apply. This can help to assist you when trying to work out if it would be a cheaper alternative.

 

Are there any risks? 

If you apply for any credit product this will show on your credit file as an application. This could affect your credit score, as it would if you applied for credit for any other purpose. Your overall debt levels could increase if you take a consolidation loan and continue to use your credit products. 

Consolidating your debt could reduce your monthly outgoings, leaving you with more disposable cash each month. Care should be taken when consolidating debt. It may increase your total amount payable, or the period, over which it is to be paid. If you are unsure of what to do, please seek independent financial advice.

Please be aware if you consolidate your existing Member Loan you may be paying a higher interest rate, which may cost you more over the term of the loan. 

 

You’re covered with Life Protection

Life Protection is included with all our loans and covers you up to the age of 70. This does not cost you anything, it is simply another benefit of borrowing from the Credit Union and has been created purely to help our members.

Loans are protected up to a maximum of £40,000 per member. This means your loan would be cleared, ensuring your debt does not remain outstanding, subject to our terms and conditions.

All benefits are paid at the discretion of our Board of Directors. Life Protection is not an insurance policy and is not guaranteed. For more information please click here.