Consolidation loan

MH313

My husband and I have a number of debts resulting in high monthly totals to pay this off. We can afford the payments but would pay much less each month by consolidating. We are looking to consolidate all debt to one loan therefore reducing the monthly payments. I have a high credit rating but have been declined on a personal loan. Any advice?

[Deleted User]

My advice is, don't do it.

I consolidated several debts, many many moons ago.

I've moved the loan several times, to take advantage of better interest rates (as prices have risen over the years, spare cash has been squeezed till it squeaked, so the chance to reduce the monthly payments by a few quid has been impossible to resist), but that has extended the repayments.

Finally, after a great many years, I'll be free of the loan next month.

I can't count the number of times, over the years, I've come within a hair's breadth of running up the debts again. :eek:

Firewalker

There are many reasons why you may be declined but this is not what caught my attention. What I noticed is the statement that you want to consolidate so you pay less - if I were you I'll look to consolidate only if this means much lower interest and I am certain that I have the discipline to overpay regularly so that the whole debt chapter finishes fast.

Otherwise the likelyhood is that you will consolidate, then tun more debt on CCs and so on; until there is a proper crisis when you will really have to do something drastic. This is a pattern seen far too often.

Firewalker

Find_The_Real

I have to agree that a consolidation is not a good idea having spent most of my life going from one consolidation to another and now ending up not being able to meet the loan repayments due to a loss of job/house etc.


I seriously regret doing it as I would have been clear of my debts by now. I things are tight then it may be an idea to post a SOA on the board where people can offer their opinions on where savings can be made so you don't feel you are just living. There is also practical advice on the board on paying off the higher debts first where you can so the monthly amount reduces.

Thrifty_Pixie

MH313 wrote: »

My husband and I have a number of debts resulting in high monthly totals to pay this off. We can afford the payments but would pay much less each month by consolidating. We are looking to consolidate all debt to one loan therefore reducing the monthly payments. I have a high credit rating but have been declined on a personal loan. Any advice?

i suspect you've been declined because, as good as your credit rating may be, your level of credit vs income is already too high. as i've said to others before, in my experience (long and painful, trust me) creditors cannot guarantee that you will actually consolidate and close your other credit accounts and therefore they have to risk assess for your current level of credit PLUS the loan you're asking for.

on a more elemental note i really really wouldn't go the consolidation route anyway. been there, done that, had to sell the t-shirt on eBay because it was a MISTAKE and is for most people who do it. they never address why they got into the debt in the first place, and so nothing changes. if you can afford your payments i would do an SOA here and try to save a little money to overpay your debts to clear them that way. budgeting will also help to change the way you think financially so that you never end up here again