Consolidation for Poor Credit?

jkelly81

bottleofred wrote: »

Regarding consolidation of debt, can I just say that it only works for around 10% of people who try it and unfortunately, I wasn't one of them. So please think carefully about consolidation or borrowing from high interest sources, as I did it and it only made things worse for me.

Good luck

Can you elaborate on why it didn't work? I seem to read the same story time and time again and I find it both frustrating that a. Someone was able to receive a consolidation loan b. Wasn't able to utilise it.... I am genuinely interested, not looking to pick faults. I just fail to see how potentially paying less each month (and overall) in debt can make matters worse!!

eyeopener2

Consolidation doesn't address the underlying problem of overspending and borrowing more.

People pay off the credit cards, do not close them, and run up the debt again.

It happens time and time again, and I know from my own experience that can and does happen. Luckily my consolidation loan wasn't secured on my home.

Address the spending first and maybe try and come to some arrangements with your creditors or a DMP.

E2

SniperMonkey

I've been and probably am in the same position. I pay so much out a month that I could quite easily afford a consolidation loan and have 100's left spare. It's a tricky situation. I hope you get sorted.

yorkshire-lad

jkelly81 wrote: »

Can you elaborate on why it didn't work? I seem to read the same story time and time again and I find it both frustrating that a. Someone was able to receive a consolidation loan b. Wasn't able to utilise it.... I am genuinely interested, not looking to pick faults. I just fail to see how potentially paying less each month (and overall) in debt can make matters worse!!

the reason why it usually doesnt work is because people are robbing peter to pay paul, they are just shifting debt around and not tackling it.

the OP needs to take a step outside the circle and see why they have racked up this debt in the first place, nights out, shopaholic, gambling, drinking etc (im not saying its any of those they are examples:o)

if the OP did get a loan, and cleared the debts, they free up the credit on the cards etc, so when there out and about they have a habit of spending on it again....back to square one.

do a search on this forum and you will see many many threads about this kind of thing.

just to add, lenders wont care if its a consolidation loan, they have no gurantee that you will pay the debts off using the money.

good luck to the original poster, but you should avoid a loan and look at why the debts have arisen before making a choice.

good luck.
YL