Unsecured loan for poor credit

mi33cupc@ke

Hi all, I'm looking for an unsecured loan of £18k to consolidate my loans/cards etc. I have a poor credit rating though. Could anyone advise the best company to go to to avoid going down the refusal spiral please?

Consumerist

Truth is, a bad credit record is likely to stop you getting credit anywhere unless you are prepared to pay a very high APR.

Consumerist

OK then, where was I . . .

Firstly, a consolidation loan is not always the best answer.

The rule of thumb is to pay off debt at the highest APR first (minimum payments on the rest) but if your credit record is already trashed then it would seem your are not able to meet your current commitments, leading to late and missed payments.

I think you have two choices to start with. You can produce a Statement of Affairs to publish on the forum for constructive advice from people who have dealt or are dealing with debt or, alternatively, you can go direct to one of the free debt advice services. If you decide to go to a debt advice service, it is important that you first open a new basic bank account which provides DD and SO facilities (with an unconnected bank) then redirect your income and move your DDs and SOs to the new account. This will ensure that if a debt management plan is arranged then you retain control of your finances. Your current bank is likely to take what it is owed without your consent once it knows you are in financial difficulties.

Before deciding what you want to do, why not have a look at the MSE Debt Prolems page to get a feel for what you can do to help yourself.

Take a deep breath. You are not alone and we're here to help you if we can.