Facing my debt with Lloyds...can anyone advise?

kellymundy

Hiya guys.

We're finally facing up to the debt we have, mostly with Lloyds over various CC's, OD's and a personal loan.
I'm just wondering if anyone has had any success asking their bank to put all the money that is owed to them into one loan to pay off with one payment?
We want to get rid of all the cards, DO's and the currently loan and just have the 1 payment. We've worked out that with what we currently pay them on all of the above we can afford to pay the whole amount off in around 4 years.
Has anyone asked they creditors to consider this option (only other option we have at the moment really is a DMP and we really don't want to go down that route unless we have too)?

DVardysShadow

kellymundy wrote: »

Hiya guys.

We're finally facing up to the debt we have, mostly with Lloyds over various CC's, OD's and a personal loan.
I'm just wondering if anyone has had any success asking their bank to put all the money that is owed to them into one loan to pay off with one payment?
We want to get rid of all the cards, DO's and the currently loan and just have the 1 payment. We've worked out that with what we currently pay them on all of the above we can afford to pay the whole amount off in around 4 years.
Has anyone asked they creditors to consider this option (only other option we have at the moment really is a DMP and we really don't want to go down that route unless we have too)?

I have to say that this 'we want just the 1 payment' line comes up quite frequently, and I always feel there is an element of self deception about it. Loans are much harder task masters than credit cards and overdrafts, because you must feed them exactly 1 plateful of cash every month. There is no flexibility. So if you cannot sort yourself out while you have cards, you are even less likely to be able to do it with a loan.

Please take the time to post a Statement of Affairs http://makesenseofcards.com/soacalc.html and let people take a look through. That way, you will get plenty of good advice for all areas of your finances, which should help you get on top of the problem.

kellymundy

DVardysShadow wrote: »

Loans are much harder task masters than credit cards and overdrafts, because you must feed them exactly 1 plateful of cash every month.

That is exactly what we want. We're terrible jugglers and with all the cards, loans and OD payments we are getting ourselves into more and more of a mess. We just need it to be straight and simple.
I really appriciate your advise and that you took the time to reply and I know it's probably going to come across rude as you can't get tone one here, but all we want to know is if others have been allowed to swap all the different debts with one bank into 1 loan (no extra money and getting rid of all cards, OD's etc), and would it possibly help if we said to the bank that we have been seriously considering entering a DMP?

DVardysShadow

kellymundy wrote: »

That is exactly what we want. We're terrible jugglers and with all the cards, loans and OD payments we are getting ourselves into more and more of a mess. We just need it to be straight and simple.

Hmm. It is not working for you. You don't need it to be straight and simple as much as you need to understand exactly what is going on. Others will tell you from bitter experience that consolidation was for them actually the road to even more ruin. I am surprised that no one has actually come here and told you that already!

Please, get a Statement of Affairs up here before going off down this route. A loan is a treadmill and if your finances are tight it is the last thing you want. Of course all credit to you for being determined to get it sorted.

whyowhy_2

You are talking about a consolidation loan - and there is a whole marketplace full of people willing to supply them at a price. Call around and see what rates you qualify for.

Alternatively, of course, if you start a DMP through a provider such as Debtplan, then that is precisely what they would do for you. You pay them the amount that you can afford each week and they will distribute it to your creditors (Lloyds). The advantage being that they will hopefully freeze interest and charges. The disadvantage is that it will mess up your credit rating for some time.

It really is worth posting an SOA so the good people of this board can give you some more informed advice.

Good luck dealing with your debt!

d_c

themull1

if you can get a loan to cover your debts from a bank to consolidate all your payments then go for it. it will be easier just having one monthly payment, just make sure that you don't take out any extra loans or spend on your c card.! make sure that you shop around for the best deal, and don't have the loan so you will struggle to meet the monthly payments, even if you take it out over slightly longer than four years, and don't get a secured one. Good luck.:p