We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
Consolidation Loan question...
digitdemon
Posts: 29 Forumite
in Loans
Hi,
I have about 5 different credit cards and was looking to get a consolidation loan to pay them all off (12,000) over 60 months and as a result end up with a lower monthly payment to start to clear my debt.
As part of the process I want a company that will pay my card issuers directly and in the process close all the cards accounts, therefore closing the credit allowances that the cards gives me. Effectively then as this would be part of the initial agreement when taking out the loan, my credit wouldn't increase, but would simply shift from 5 lenders to 1.
I have tried to apply for a loan from RBS (who I have my current account with), and I'm being told that it's been denied on the grounds of affordability, most likely because in their eyes they're giving me another £12,000 worth of credit.
Does a process/company exist that would allow me to do what I'm after, i.e. just shift the debt to a single loan and close the cards in the process without applying for higher credit?
Hope that makes sense and thanks for any help.
I have about 5 different credit cards and was looking to get a consolidation loan to pay them all off (12,000) over 60 months and as a result end up with a lower monthly payment to start to clear my debt.
As part of the process I want a company that will pay my card issuers directly and in the process close all the cards accounts, therefore closing the credit allowances that the cards gives me. Effectively then as this would be part of the initial agreement when taking out the loan, my credit wouldn't increase, but would simply shift from 5 lenders to 1.
I have tried to apply for a loan from RBS (who I have my current account with), and I'm being told that it's been denied on the grounds of affordability, most likely because in their eyes they're giving me another £12,000 worth of credit.
Does a process/company exist that would allow me to do what I'm after, i.e. just shift the debt to a single loan and close the cards in the process without applying for higher credit?
Hope that makes sense and thanks for any help.
0
Comments
-
There's your answer there I'm afraid. The banks etc are still keeping their cards close to their chests and still apprehensive about lending money.digitdemon wrote: »
I have tried to apply for a loan from RBS (who I have my current account with), and I'm being told that it's been denied on the grounds of affordability, most likely because in their eyes they're giving me another £12,000 worth of credit0 -
Not as far as I'm aware, most if not all lenders view a consolidation loan as additional credit rather than a 'replacement' and don't offer a service to transfer it for you.0
-
Not as far as I'm aware, most if not all lenders view a consolidation loan as additional credit rather than a 'replacement' and don't offer a service to transfer it for you.
That's not good news then. I wonder if it's an unwritten rule between them then that this sort of scenario is not offered, as effectively I'm lowering my interest payments and therefore they're losing out.
Still gonna keep searching as I'm hoping someone or something is out there to help!
Thanks.0
This discussion has been closed.
Categories
- All Categories
- 347.2K Banking & Borrowing
- 251.6K Reduce Debt & Boost Income
- 451.8K Spending & Discounts
- 239.5K Work, Benefits & Business
- 615.4K Mortgages, Homes & Bills
- 175.1K Life & Family
- 252.8K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 15.1K Coronavirus Support Boards