Lloyds debt consolidation

Tiger44 · 12 November 2012 at 8:52AM

Hello,

First post on the site... Been reading up on other people's similar issues but would really like some advise on my situation.

Basically over the past two years due to very low income I have gotten myself into around 2.5k debt including payday loans and an overdraft. Looking around on this site my debt seems small but whilst I have payment agreements with most of my creditors, the halifax are asking for the overdraft back and will accept no payment plan as I broke one previously.

I want to get myself back on my feet as I am a young person now with a great job that pays me well- not enough to cover these debts though as I'm sure you can imagine montjly payments are high and mandatory.

I have banked with lloyds for around I've years and do not have any debt with them at all. I am considering going to ten in person an asking for a consolidation loan of 2500 to pay off over a year which will be manageable to me. If I get this I will be able to breath the biggest sigh of relief!! Only issue is I do not have a good credit score at all being only 21 and also with my debts.

Basically what I want to know is is the credit score the be all and end all of a bank loan of this size? It is quite small on comparison to others. Also my main question is can someone give me some advise on what to say etc....
Thanks xx

R_P_W · 12 November 2012 at 11:03AM

How much do you earn a year? What is the balance of debt you owe at the minute?

Existing debt levels compared to your earnings will play a bif part as well. Consolidation loans are rarely a good option (even though they might seem like a good one now).

Tiger44 · 12 November 2012 at 11:16AM

Hi, thanks for the reply!

I earn 17000 a year which is roughly 1160 after tax.
My debt is 2500 as it stands but making multiple repayments per month which are mainly interest is making the amount add up to much more. Owing the money to the bank my money comes in and out of will put my mind at ease.

However I don't know if I will even get the condsolidation loan..? And have heard elsewhere it is a bad idea. But surely better than owing to multiple lenders

R_P_W · 12 November 2012 at 3:54PM

why do you think it is better than owing to multiple lenders?

The problem is that your existing lines of credit will remain open, so what is to stop you taking the loan and then running up your cards again?

ecoverbee · 12 November 2012 at 4:26PM

If you bank with tsb they will be able to see your account so they will be albe to assist you better. They will know whether you can affrd it or not. Getting a loan for 1 year is never a good idea as you will pay tons more interest.

Thanks
Andy

Lloyds debt consolidation

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