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Loan to pay off all loans ??

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lisa.m_3
lisa.m_3 Posts: 86 Forumite
in Loans
Sorry if I'm wrong but I have heard there is a loan you could get to pay off all other loans you have, so you are paying back just the one ?

Is this correct and where would I find info about this ?

Thanks

Comments

  • stebiz
    stebiz Posts: 6,592 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    lisa.m wrote: »
    Sorry if I'm wrong but I have heard there is a loan you could get to pay off all other loans you have, so you are paying back just the one ?

    Is this correct and where would I find info about this ?

    Thanks

    The loan is just a consolidation loan. It can be un-secured and secured and has interest rates, usually similar to other types of loan.

    I would think very carefully about this if I were you. There are horror stories of people taking a loan of 20k to pay of 20k of smaller debts, and then running the same debts up again. You need to make sure that your outgoings are covered by your income. There are so many other ways to pay off your existing loans. Some may be unenforecable, others you may get the interest frozen, DMP, Bankruptcy, etc etc Think carefuly!!! Good Luck.
    Ask me no questions, and I'll tell you no lies
  • Rob_Marx
    Rob_Marx Posts: 116 Forumite
    only do this if you are confident you are now financially responsible, i work in finance and the problem most people have is they take out the loan and then spend it instead of paying the other debts off, and they end up with twice the debt

    its just a normal loan anyway, so if you owe £20k to 5 people you just get a loan for £20k from one person and pay the other 5 off, then you just owe money to one person and pay them only from then on
  • lisa.m_3
    lisa.m_3 Posts: 86 Forumite
    Thanks guys,

    Could you tell me please if you had bad credit (really bad) would you still be able to get it ?

    Thanks
  • stebiz
    stebiz Posts: 6,592 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    lisa.m wrote: »
    Thanks guys,

    Could you tell me please if you had bad credit (really bad) would you still be able to get it ?

    Thanks

    Only if you had security, such as your house!! Then you risk losing your house. You really sound as if you need to go on a DMP. Go on the Dept Free Wannabee board. You will get lots of help honest!!!
    Ask me no questions, and I'll tell you no lies
  • jonesMUFCforever
    jonesMUFCforever Posts: 28,898 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    lisa.m wrote: »
    Thanks guys,

    Could you tell me please if you had bad credit (really bad) would you still be able to get it ?

    Thanks
    You want an honest answer or do you want to be deluded?

    The honest answer is not a hope in hell - sorry.
This discussion has been closed.
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