Consolidation loans?

bitemarx

Hi,

I just applied for a loan to pay off my credit card and an existing OD. The total amount is £1300, but I'd like to know why most people on here seme to feel that consolidation loans such as these are not a good idea.
I've read through the earlier posts concering such loans but I still think its more sensible for me to pay off my £1000 outstanding on the CC and the £300 on my OD, and make monthly payments of £30 towards this loan.

Am I missing anything here?

can someone point out the drawbacks of this idea? I have 14 days to cancel this loan, so I would really appreciate it if someone can point out any negatives here.

Thank you!

iolanthe07

A consolidation loan for such a small amount will probably be OK. The reason so many of us are against them in principle is because they do not address the underlying reasons for getting into debt in the first place. They lull you into a false sense of security because you think you've sorted your debt, when in fact you have only postponed it, often at usurous interest rates. So many people just go on with one consolodation after another until they find themselves in deep pooh.

bitemarx

Thank you!