Consolidate debts

leigh1

HI,

I have 3 credit cards & a budget account totalling £12K in debt.

I want to place them all on a loan or something to make it more affordable as I keep switching the debts to new credit cards with 0% interest & pay them off like this.

Is there a low interest rate credit card out there with a high limit or a loan?

Other problem is my husband is self employed & would they require his accounts as he does not have them as he is a sole trader?

margaretclare

Not a good idea. There are many pitfalls with so-called 'consolidation' loans, the main one being that it lulls you into a false sense of security - all those ads about easy affordable lower payments - and you have not paid off the debts at all, only shifted them to somewhere that you may be paying more interest over a longer period of time. There's also the temptation to spend on those cards, and you haven't solved the problem at all.

Aunty Margaret

Robert_Sterling_3

margaretclare wrote:

you may be paying more interest over a longer period of time. Aunty Margaret

You may be paying more interest in total.
This might be due to you paying less interest per year over a longer period.
It might even be from paying at a lower rate of interest than at present but over a much longer period.

Avogirly

I consolidated my debts into one payment, but I did it through the bank. Because I was a graduate I got a good rate. My only advice for you is that you should not take the PPI associated with the loan, this really does increase the amount. I did take PPI, but wanted too because I have a hazardous job and hobby and therefore could not really do without the insurance should anything happen.

monkeysnail

If you own your house, tell the lender it's for home improvement to get the highest score possible for that question. If not, tell them for a new car. If you tell them it's for consolidation, you get a very low point and higher interest rate.

THis is so that if ever you default, they have something to come after unlike consolidation of loans

Check https://www.creditsecrets.co.uk

It helped me.