All the debt in one basket

bizzy_lizzie

Morning

I know we are always against an getting a consolidation loans but am I right in thinking that we just mean a secure consolidation loan, just adding the debt onto a mortgage. A personal loan with interest rates lower than cards & with structured repayments isnt so bad is it? As long as you ensure that you can overpay every month & can repay in total at any time. I am trying to think if there are any negatives or whether it not such a bad idea.

I owe some money for converting the car to LPG & building materials & roofing for a conservatory and a new dishwasher & washing machine for when the old ones blew up before Christmas. I never really considered them debts before, just spreading the pain over a few months, but now i am thinking...um, maybe i have afterall & should be paying the minimum interest

Thank you
BL

lynzpower

No its not just secured consolidation we object to! Its all consolidation lol

Im definately not the only one suffering with a consolidation loan here, plenty of us are battle scarred from them....

Avogirly

Before consolidating I would suggest you tart, i.e. move your credit onto 0% cards if you can, even low rated cards are better than a loan, which you are unlikely to get at a really good rate, especially if they know you are consolidating. Plus with CC's you can easily cancel the PPI, something that loans are hard to do after 30 days.
Also, once those cards are clear there's always the temptation of running them up again.
My advice, and I speak with experience is STAY AWAY!

Broken_hearted

I don't think consolidation loans are the problem. I think it's the attitude to debt, you get the loan then run up the debts again. We got a loan 3 years ago and spent the money on a holiday. Still you live and learn.

mom23

Awfull things don't even think about it!!
i learnt the hard way by consolidating my consolidating loan!!! ouch:mad:

bizzy_lizzie

oh dear. Best avoided then. I'll be tarting instead then ! (its been a while but i am sure i can still remember how !)

Thank you
BL

needtoshopgal

Yup, we consolidated our consolidation loans too. first one was for £5K, next one £7.5K, then 12K finally 15K. As long as you can live completely within your income including all "unexpected outgoings" like washing machines, dishwashers etc, then a consolidation loan might be the answer. If you can't, then it won't. Trust me, I know, BTDTGTTS!!! And also got nearly £30 grand of debt.

CLAPTON

first things first...have you addressed the reason as to why you are getting into debts? an appliance breaking down is not really an unexpected event....its virtually a certainty.
much better to addressing your spending with a view to paying more off the debts every month and not considering debt consolidation. why not post your SoA here ...i.m sure people will give good advice and suggestions for reducing spending.

shellabear

the majority of my debt was due to consolidation built up over 10 years. there will be another way for you but i just wish this website had been around 10 1/2 years ago.

Montymoo_2

My problems were also caused by consolidating and then spending again on cards, think hard about whether you have the control not to spend

southernscouser

The problem I had with consolidation is that I would get a loan to clear the cards, then rack the cards up all over again! :doh: :wall:

If you are certain you won't do that then a loan 'could' be the best way to go about things!

However, often switching balances to different cards can be a better option. For example transferring stuff to a low life of balance card at say 4.9%! You won't find a loan that low!