Loan to pay off debts... bad idea???

diva86

Hi Everyone this is the first thread I've started on here so excuse me if it's in the wrong place or something.

Basically we have £6500 of debt which has been acquirred through several things, one of which is a loan that was taken out a few years ago. We have been struggling to keep on top of everything and the demand for higher payments is getting worse with threats now coming from a Sheriff Officer ?(is that the right term?)

So basically to me the only option seems to be paying everything off with a large loan and paying it back in one monthly installment.

I lost my job in June and have had no luck finding anther, my partner works but gets a pretty crap wage including tax credits, net wage and child benefit we get £1080 per month! We live in a rented home and are not entitled to any benefits at all so we really do struggle as we have a 3 year old son too.

I have recently had to face up to the fact that the debts are my fault and I knwo I need to sort them out but we just cannot keep up with the demand being put upon us by debt companies.

Has anyone else with a poor rating taken out a loan to pay off debts? and more importantly did it help?

Thank you for reading.

worried_jim

You don't have the means to pay it back. Contact a debt charity before you do anything. CCCS or Payplan. Good luck !

CLAPTON

best post on the debt free wannabe board and post up an SOA ..format here
http://www.makesenseofcards.com/soacalc.html

you also may wish to seek help from the free debt management companies.. CCCS, Payplan and CAB

Oldernotwiser

This area (and the Bankruptcy Board ) are full of people who've dug themselves into even deeper debt by taking out a consolidation loan.

As suggested above, consult one of the debt charities for personalised advice.

diva86

Thanks, I guess I know it is a bad idea but just anything that gets the people off my back seems like heaven ATM! We are supposed to be paying out £400 a month just to debts which obviously we cannot even think abot doing so things keep falling behind and just getting worse and worse.

I thought debt companies just put it all together into a consolidation loan, so would it not just be the same?

Sorry for being a bit confused my head ios just all over the place with everthing going on.

worried_jim

diva86 wrote: »

Thanks, I guess I know it is a bad idea but just anything that gets the people off my back seems like heaven ATM! We are supposed to be paying out £400 a month just to debts which obviously we cannot even think abot doing so things keep falling behind and just getting worse and worse.

I thought debt companies just put it all together into a consolidation loan, so would it not just be the same?

Sorry for being a bit confused my head ios just all over the place with everthing going on.

Please do not contact a debt company! You need a debt charity who will help and arrange everything for free. I cant stress how helpful these can be and you may find that you pay a lot less than £400 pm and get your creditors off your back without it costing you a penny in service charges. http://www.payplan.com/

I_know_my_ABC_and_my_CMYK

Your debt is less than 15k, would a debt relief order help as this would give you some breathing space until you get back on track with work etc.?

Have a look on the debt free board as the info is on there. Also National Debt Line would be able to help you or the consumer credit counselling service or CAB


There is help out there without you having to take another loan out.

diva86

Hi again, well things went from bad to worse yesterday!

One of my DD's rejected from the bank so the company phoned and asked me for the £604 (normally pay £40) and because I said I could'nt do it they ahve cancelled my DD and are sending an agent round to collect the amount. Also have another comapny telling me they are sending a sherriff officer round. As well as the fact I got a letter from tax credits, one stating I am not entitled anymore and the other stating that we owe them £1400 from last year! How the hell does that work out?!

Have contacted Payplan hopefuilly will help, I just need something to get my head sorted right now

worried_jim

No one is coming to your house to collect £640, they are just scaring you. Really glad that you have contacted payplan.

CLAPTON

diva86 wrote: »

Hi again, well things went from bad to worse yesterday!

One of my DD's rejected from the bank so the company phoned and asked me for the £604 (normally pay £40) and because I said I could'nt do it they ahve cancelled my DD and are sending an agent round to collect the amount. Also have another comapny telling me they are sending a sherriff officer round. As well as the fact I got a letter from tax credits, one stating I am not entitled anymore and the other stating that we owe them £1400 from last year! How the hell does that work out?!

Have contacted Payplan hopefuilly will help, I just need something to get my head sorted right now

re-read my previous post
without your SOA no sensible assistance can be given