Please Help Need Advice

rubyred35

hi im receiving income support and disability benefits . my bank tsb knows my situation , i took out aloan in april for a car 7,000 , then decided to do my home up, using overdrafts and credit cards , i called into bank and asked if i could top up loan instead of paying interest on overdraft and cards , my overdraft limit on both my accounts is 2,500 .. and credit card 7,000 , there reply was sorry not at present , then in july when i went to pay my monthly bill to credit card i was asked to see manager , she offered me another loan on the condition i paid all outstanding overdraft and credit cards off ,plus that overdrafts would be reduced to 500 only , i said i would think about this , they are constantly asking me back down the bank to arrange loan ? im very confused its like they are panicking ive never missed any payments , i cant understand why all of a sudden they will now give me a loan but only on there terms to pay all debts ?plus they offered me an extra 2,000 for a holiday ? they just seem to keen please can you advise me thanks

latecomer

If I understand this correctly, you asked for a loan to pay off your overdraft and credit cards. They initially refused but have now agreed subject to you paying off your overdraft and credit cards? If thats right then whats the problem as it is what you requested in the first place. To me it sounds like the bank doesn't want to loan you additional money on top of what you already owe hence the clause about paying off existing debt.

As for them now being keen, they might think that you are going to take a loan from someone else and obviously would rather they got the business. If its at a good rate then why not take it. If its not then look elsewhere.

NickX

Be very careful here. Your level of Unsecured debt is high and the Bank can see this. I suspect that they want to replace it with a single loan that is Secured. This means you would be putting your home at risk should you default, you really want to avoid this.

Generally speaking, debt consolidation is not a good idea. I know its messy with bits here and there, but I can virtually guarantee that they want to consolidate for their benefit and not for yours. They either want to charge you more interest or they want to get a right to your assets.

I suggest you go to the DFW (Debt Free Wannabee) Board and post there. Many over there have beaten their debts and can provide excellent advice on getting these debts under control.

Good Luck.