Thinking of applying for a loan - not got the best credit score!!

poppasmurf_bewdley

rae18 wrote: »

Genuine question here.......just hopping through some threads and read this one.......why do some of you advise against consolidating debts? Sorry if that's a daft question, but is it not better to have a fixed payment for a fixed amount of time than lots of individual debts with different interest rates? And I know about the idea of shuffling to 0% cards and so on, but surely if you're in debt already, there are only so many time it can be done without it getting to a point where you can't shuffle again?

I'm not trying to be awkward, and I know some of you have way more knowledge than me, which is why I'm asking, it's just got me a-wondering........thanks!

The mania for consolidating debts is, to my mind, a comfort thing from someone that thinks having one large payment is better than numerous small payments. It's like having a dummy - soothing but doesn't really sort out any problems.

I can remember taking out a part-consolidating loan myself about 20 years ago. The company I borrowed the money from made sure I paid off the other companies by sending me cheques made out to them and including them in what I borrowed. I bet they don't do that nowadays.

I only managed to repay that loan when I sold the house. It was one of the biggest financial mistakes I have ever made. My credit card balance was soon back at £2k and I still had the loan to pay off.