debt consolidation loan

softmind82

Hi guys i need to know that when lenders say "debt consolidation loan" so thats mean people are getting loan to sort their debts etc .. then does it make sense to do credit check rather then checking the in and out the expenses and salary ...

All i mean to say when any lender lend some money then he should concen with the bank details and salary proof.

Thanks

nomoneytoday

Since 90% of people get a debt consolidation loan, and continue to spend on their existing debts and cards, then yes it does make sense to do a complete check.

tom188

Debt consolidation loans generally only serve to allow people to get further and further into debt.

Most just continue to amass debt in other ways whilst paying off the existing debt at usually a lower rate over a much longer period.

Avoid unless there is no alternative and you are willing to cut up all your cards.

softmind82

tom188 wrote:

Debt consolidation loans generally only serve to allow people to get further and further into debt.

Most just continue to amass debt in other ways whilst paying off the existing debt at usually a lower rate over a much longer period.

Avoid unless there is no alternative and you are willing to cut up all your cards.

So thats mean you can get easily small debt condolidation loan compare to proper loan for your personal usage ?

Xbigman

No.

The debt consolidation loans you hear advertised all the time are just a marketing gimmick. They are just personal loans that are being pushed as the answer to peoples debt problems, which they are not. Why are they being pushed? Because lenders know that you end up paying much more interest over a longer time period. It is now so bad that some lenders will give you a consolidation loan and not care if you actually pay the other debts off or not. The more responsible lenders will send the money to pay off to your other creditors directly and just give you the leftovers, if any.

The type of loan that is closest to what people think is a consolidation loan is called a managed loan. These are high interest and a nightmare. Just look at any managed loan thread for details.
Regards



X

jillie1974

i would avoid at all costs!!
most of these are loans secured against your property! so if you sold up you may have to pay then as well! and are over a long period of time prob more than if you were to pay off the debts themselves!
if you are having probs with debts i would recommend seeking advise from CCCS or Payplan!
and defo check out other threads in regards to these loans