How do you consolidate credit card debt when you have a poor credit rating??

banana32

Hi have built up a large credit card debt over the years. (15k) I run my own small business, and used credit cards to pay for day to day expenses. I now want to transfer the debt to a lower interest loan, rather than just paying off the minimum off of each card each month. But i can't get a loan because of my poor credit rating.

How do I do this? help please?

bottleofred

Hi banana32 and welcome to the forum,

Debt consolidation really isn't advisable as it only works for approximately 10% of people who try it and I wasn't one of them. You should post your statement of affairs (you'll find the link near the top of page one) and that way you'll get loads of tips/advice on how to save cash which can then go towards the debts. I tried to get loans too and was lucky enough to get one and clear the cards, but it wasn't long before I owed even more money, so consolidation really isn't the answer.

david39

I agree with bottleofred - if you are in so much debt that low interest lenders will not lend to you then consolidation usually only works out for the new lender, not the borrower.

You should look to finding a way to put more money into the repayments thereby reducing the debt - take the suggestion made by bottleofred. Then, when you have made inroads into the total debt, you will have sufficient leeway to be able to manipulate the loans and reduce the %ge interest being paid.

If you are only paying off the minimum amount each month, it will show up on your credit file. You are indicating to any new lender that you approach that you are already financially stretched.