Loans for bad credit

Gavin_Dixon

i have got 3 payday loans and 3 credit cards which total about £5,000. I have a bad credit rating but am now in a good financial position and would like to consolidate my debt and pay off £300 pm. However, because of my credit rating i cannot get any loans! any suggestions?

tell_it_how_it_is

If loans are impossible, but you have decent money available to you now, all I can suggest is live frugally for a couple of months and get the payday loans knocked off the list ASAP.

And look into balance transfer options for the credit cards, but if not, concentrate on paying off as much as possible over the following months, weighted towards the ones with the highest interest rate first.

jason1231972

Gavin_Dixon wrote: »

i have got 3 payday loans and 3 credit cards which total about £5,000. I have a bad credit rating but am now in a good financial position and would like to consolidate my debt and pay off £300 pm. However, because of my credit rating i cannot get any loans! any suggestions?

Forget about a loan - on the offchance that you did get one, it'd probably save you no money anyway, and may even cost you more.

£300pcm is a good amount to throw at 5k debt. Get the payday loans out of the way first, pay them off completely, then totally close the door on that form of borrowing. Ever again.

Then, if your debt still stands at 5k and you still have £300pcm to pay, it'd be quite easy to work out a decent medium-term plan to totally get rid.

For relative ease/convenience, have a look at snowballing - tackling the smallest debt first with most of your £300, then moving onto the second-smallest (whilst still always maintaining minimum payments on all debts).

If you have a bit more discipline, attack the highest interest first, then the second highest, and so on.

If you had just one card (I realise you have 3) with 5k debt @ 20% APR, you'd be rid of the whole debt in under 2 years. Therefore, you can probably tackle all 3 in under 2 years, depending on the exact split of your balances, exact interest rates, etc.

Good luck.

BugsyBrowne

Good advice there Jason.

Vikipollard

Gavin_Dixon wrote: »

i have got 3 payday loans and 3 credit cards which total about £5,000. I have a bad credit rating but am now in a good financial position and would like to consolidate my debt and pay off £300 pm. However, because of my credit rating i cannot get any loans! any suggestions?

If you have three payday loans, are you sure you are in a good financial position? Have you been rolling them over?

You need to forget consolidation (as that effectiely doubles your debt as there's no guarantee you will use the money to pay off what you already owe).

Other than that, what Jason said!

DCFC79

Gavin_Dixon wrote: »

i have got 3 payday loans and 3 credit cards which total about £5,000. I have a bad credit rating but am now in a good financial position and would like to consolidate my debt and pay off £300 pm. However, because of my credit rating i cannot get any loans! any suggestions?

No reputable lender will lend you what you need since you have used pay day loans, follow jasons pretty good advice. £300 is quite a good amount to put towards the pdl's and cards.