Advice on Debt Consolidation

rs777

Hi there guys,

I've got myself into about £4500 worth of debt from VERY bad companies, due to desperation.

I am looking to consolidate all of this into one single loan, but fear that I will get rejected due to my credit rating being very poor.

I owe:

1500 loan - Welcome finance (huge interest rate)
1300 Barclarycard - about 27%
700 Capital One - about 34%
500 Vanquish - 34%
400 Natwest - 16%
300 Nationwide OD - 7% i think.

The problem is I pay off the credit cards, but I have a control problem and end up spending what I paid off the month before. So I want it in a loan, and cut them up.

My credit rating is very poor according to Credit Expert, so I when I applied to YES LOANS for £5000 over 3 years for £170 a month i was so relieved. But I decided to check the company out, after they told me about the 'admin fee' and found they were a load of crooks.

So can you guys recommend me a company which could help me with my current situation?

Thanks!

tom188

You cant borrow your way out of debt.

In your position it would be far better to cut up your cards and snowball the debt by paying off the highest paying cards first than getting a loan, which will undoubtably be even more expensive than those from your current lenders. Without discipline you could also risk finding yourself in the same position in 2 years that you are in at the moment, but owing the loan on top.

Visit the debt free wannabe board and post a statement of affairs and people will advise you on where you can cut down spending so you can throw more money at the debt.

rs777

I appreciate your advice however I would prefer to do it this way. Anyone else got advice? THX.

anniecave

rs777 wrote:

The problem is I pay off the credit cards, but I have a control problem and end up spending what I paid off the month before. So I want it in a loan, and cut them up.

Thanks!

This is your problem. You need to get your spending sorted out first. You need to get your finances under control first.

If you have a bad credit rating you will only be able to get high interest consolidation loans. Consolidation may be an option for you but it only works if your spending is under control and you know what you can and can't afford.

I don't belive that Yes Credit are crooks. Not in an illegal sense. What sort of rate were they offering you (in relation to your other debts) and what was the admin fee?