Debt Consolidation Loan

SergeiUmanov

Hi, I'm new here so apologies if this has already been covered on these forums, but I'm after some thoughts on the above.

I have previously some unsecured debts which I am trying to consolidate, but every time I apply for a 'consolidation loan' I get knocked back. The reason they provide is "you have too much credit". Great, thanks, I know that, I'm trying to sort it by reducing it into 1 creditor! I have never missed a payment on any bill. Never.

I can see it from their perspective that by giving you a £10k loan to pay off your £10k debt, that potentially you may not follow through with your word, have a spending spree, and suddenly find yourself being a £20k debtor. I appreciate they will have had their fingers burnt by people making the very same promises.

My question is whether there are any companies out there who will A) ignore computer screen which say you are high risk i.e. take your word that you will clear your debt write some form of undertaking C) do it for you.

The only alternative I can see is falsely asking the bank for a car loan where I'm sure they will hand over the cash with very few questions. It seems wrong, it is wrong, but there seems to be a presumption that because you are seeking a consolidation you will somehow screw them over. Has a persons word been replaced with computer formulae?

DCFC79

Maybe try your own bank.

SergeiUmanov

No one will touch us for unsecured loan, not even my own bank of 15 years. A secured loan comes out at 42% APR. No chance.

Apples2

Problem is that there are too many people like this guy, blame him.

https://forums.moneysavingexpert.com/discussion/4529367

Gets offered a Consolidation Loan but has now decided he wants to spend the money on something else.

gb12345

SergeiUmanov wrote: »

The only alternative I can see is falsely asking the bank for a car loan where I'm sure they will hand over the cash with very few questions.

And why would a lender consider you for a "car" loan when they won't for consolidation? You will still be borrowing a total of £20k.

The reason for the loan is irrelevant, your personal situation means that you can not borrow another £10k full stop.

Oh and all those lenders who have turned you down will now show up as a search on your credit file, making your chances even lower.