Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@. Skimlinks & other affiliated links are turned on

    • Mr.NSG
    • By Mr.NSG 5th Jan 18, 12:08 AM
    • 9Posts
    • 2Thanks
    Consolidation loan with bad credit
    • #1
    • 5th Jan 18, 12:08 AM
    Consolidation loan with bad credit 5th Jan 18 at 12:08 AM
    hi all,

    So ill warn you now, we arent talking big numbers here but i would really like some advice.

    First of all, ive got really bad and have a little bit of debt,
    Overdraft £3000 and credit card of £3000.
    Im considering a loan to pay back the credit card and an overdraft, both i encure monthly interest charges totalling around £220 and not really any chance in the foreseeable future of getting these back in the black.

    Here is where i need help.

    Due to my bad credit, ive been offered a £5500 loan over 5 years paying back a total of £9000.
    Now i know this is a rip off bit here is where i am considering it;
    -credit improval
    -managable repayments £150
    -first loan ive ever had and need to show i can pay back a loan in hope of a mortgage later on in life
    -out the red and in the black

    Why im sceptical
    -its 5 years,
    -there could be better out there

    Im wondering if there is anychance of getting anything better or is that the best i can hope for given poor credit?

    Should i try and pay off my debts on my own accord?

    Ill leave it there and thank you in advance
Page 2
    • Mr.NSG
    • By Mr.NSG 8th Jan 18, 6:57 AM
    • 9 Posts
    • 2 Thanks
    Money Maker., et al,

    Okay, im convinced. A loan is not the way forward and thank you for your honesty. I really need it and appreciate it.

    This is the first time, obviously, ive even written in a forum and am now seeing what people mean about SOA and DFW. ill get a thread going in there and pick up some insparation. I am ready to tighten up and do what it takes.

    Thanks again ladys and gentlemen, you are near life savers!
    • enthusiasticsaver
    • By enthusiasticsaver 8th Jan 18, 7:22 AM
    • 5,954 Posts
    • 11,854 Thanks
    I think if you ask anyone who has serious debt problems, £20k, £30k sometimes even £100k on unsecured debt they have been where you are now. At the very start of their debt problems considering a consolidation loan. It buys them time and wiggle room, they continue to spend more than they earn and their debt escalates, sometimes quickly and sometimes over a few years. Almost without exception they all say it was a mistake so don!!!8217;t make a consolidation loan your first mistake.

    You already have bad credit and admit you are not good with money. So get good with it. Do an soa and a spending diary as money maker and Arleen suggest. Yes it can be boring but if you don!!!8217;t master this you are setting yourself up for a lifetime of struggling with debt. Sort it out now while your debt is relatively small and fixable. You have to stop spending on the cards and live within a budget as a start.
    Debt free and mortgage free and early retiree. Living the dream

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to
    • zippygeorgeandben
    • By zippygeorgeandben 10th Jan 18, 1:06 PM
    • 783 Posts
    • 1,007 Thanks
    The offer you have might be the best you can get so even though the apr is high its not a rip off.

    This thread might be worth a read
    Originally posted by DCFC79
    I knew by clicking on the above link it would direct me to MY situation!
    To the OP, take a read of my situation. I wanted to consolidate and have lower monthly payments and basically, more money to play with but in reality you are just putting yourself in debt for a longer period.
    It's up to you of course but trying to read within the lines, I think that you know what the sensible answer would be,
    Good luck!
    End Sep 2016 End Feb 2018
    £8236.57 £0
    (Tesco 4.8%) £0pcm
    £6185.75 £0(Zopa 4.0%) £0pcm

    £2050.04 (Sainsburys 0% until 06/19) £140pcm
    £2000.00 £666.70 (Sister 0%) £133.33pcm

    Total debt
    £19.766.82 £2716.74 Original DFD May 2019.
    • katebl
    • By katebl 18th Jan 18, 9:35 PM
    • 624 Posts
    • 314 Thanks
    I really wouldn't bother putting money in a HTB ISA while you have debt. It will cost you far more to borrow that £200 a month (or whatever you put in) than it will earn being saved, especially when you won't see that money until you have a house deposit.

    How do you budget at the moment? Do you use cards mostly, or cash?
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

3,214Posts Today

8,975Users online

Martin's Twitter