Debt Consolidation a good idea?

hatter2

I owe about 20k over various credit cards and a loan, have about 6 payments a month to pay. I am managing to pay them them but it's hard to keep track on whats going out. Been thinking about getting a loan to cover all of these and have just the 1 payment going out a month, is this a good idea?

Thanks

skintandscared_2

no, no, no, no......

83% of people who take out consolidation loans end up reusing their credit cards. DON'T DO IT!!! :eek:

MrsPorridge

skintandscared wrote: »

no, no, no, no......

83% of people who take out consolidation loans end up reusing their credit cards. DON'T DO IT!!! :eek:

I agree its happened to me - I consolidated about 3 times to get rid of credit card debt and look at my siggy now:eek:

~Beanie~

And me

I started with one credit card - got another with lower interest rate to transfer the balance to....and another....and another.... and another....then a loan....

I didn't cut the cards up and I am now repaying 4 maxed out credit cards and 1 consolidation loan.

WorkingHardDFW

and me.

Don't do it....

We took out a consolidation loan when we reviewed our mortgage 3 years ago. Our debt just keep increasing since we weren't actually controlling what/how we spent and the debt spiral so much so that a year ago it stood at £52k!!!

So effectively we are paying extra mortgage payments on the extra bit we borrowed and we are clearing the CC's now.

If you can afford to pay the cards off each way then do it that way. Take a good look at how you are running up the debts. A spending diary is invaluable at looking at what you are actually spending against what you think you are! In conjunction with a budget its really helped us get our spending under control and really reduce our debts...

Good luck