I just recently looked into one of the Churchill debt consolidation products. For some time I've been making minimal payments on my credit cards and a flexible loan, and I never get around to making extra payments to clear them.
I contacted Churchill...
After initially speaking to an (hard sell) advisor, I thought their product may be for me! They took my bank details to take an initial payment off of me and sent me the paperwork.
What I found in the documentation and small print was this:
Over 55 months of payments, the ...
total to pay back was nearly 8% more than the current low loan apr (7.9%) products.
Your credit cards would appear in arrears throughout the duration of the loan. So if you need to apply for another card, not sensible if you're trying to clear others I know! But this could cause problems down the line and it would be nice to have the option!
The other thing I found was that you would need to keep paying their management fees - up to 36 months if you wanted to clear the debt early. This works out to be considerably more than the early repayments penalties on some of the better loans available.
To sum up, I feel that acquiring a loan with a low apr and a reasonable early repayment fee would be the better option for most!
Sufficed to say I cancelled my agreement and didn't lose any money.