Debt consolidation FAQ

A. A debt consolidation loan is a personal loan, that could help you to consolidate your credit cards, personal loans or any other debts into one single personal loan.

A. Debt consolidation is a smart way to manage your finances in an easier way. You may want to debt consolidate to:

• Ease your cash flow by reducing your monthly repayments
• Simplify your situation by consolidating your various debts into one simple personal loan

A. With a G&C Mutual Bank debt consolidation loan, you can consolidate small debts, car loans, personal loans, and credit card or store card debts.

A. This will depend on your income, existing debts and other regular expenses.

A. G&C Mutual Bank sets a minimum term of 1 year to a maximum of 7 years to repay your debt consolidation loan. The shorter the term of the loan, the quicker you will be in control of your finances.

A. Secured loans are those loans that are protected by an asset or collateral of some sort. The item purchased, such as a home or a car, can be used as collateral. We will hold the deed or title until the loan has been paid in full, including interest and all applicable fees. Secured loans usually offer lower rates, higher borrowing limits and longer repayment terms than unsecured loans.

On the other hand, with an unsecured loan you are not required to use your personal assets as a security against the loan. Lenders take more of a risk by making such a loan, with no property or assets to recover in case of default, which is why the interest rates are considerably higher. Unsecured loans might be used for student loans, for small personal loans or for borrowing money to carry out minor household repairs and for small personal loans.

A. No. However if you wish to redraw your advance payments or increase your loan, certain fees apply.