Consolidation loans

adg1980

I have around £13,000 on credit cards, which I would like to transfer into a consolidation loan.

However, I'm not a home owner and my credit history isn't great.

Is there a way to do this? And will it affect my credit history?

Thank you!

[Deleted User]

Probably not. You'd need a large income to get another 13k. And anything you do get will be at a high rate.

Best to turn your attention towards paying down the higher rate debts. If some of it is on cards, is there any potential to move it around between your cards?

poppasmurf_bewdley

Firstly, consolidation loans rarely work unless you destroy all your cards and close the accounts, so temptation is removed completely.

Secondly, any reputable lender will look at your current borrowing (£13k) and add the amount you want to borrow (£13k), making £26k in total. The normal maximum amount loaned is 50% of salary, so you would be needing to earn a minimum of £52k to be considered. And that's not counting any other debts you may have.

Rather than consolidation, you should perhaps consider reducing your spending whilst at the same time concentrating on paying off the highest interest rate CC first. If you have run up £13k on credit cards, then you are definitely living above your means.

As I said, consolidation rarely works. Many have tried, only to start using their CC again and finish off much worse than when they started.

imoneyop

The answers everyone gave you when you asked exactly the same question last week will still stand.

You're not going to get a different answer this week.

CherlokHomes

No such thing as a consolidation loan it's a loan.

Not a good idea as others as stated unless you rip the other cards up and cancel them and the chances of this are slim.

Throw as money at the debt as possible and you'd be surprised how much the debt lower's.

DCFC79

imoneyop wrote: »

The answers everyone gave you when you asked exactly the same question last week will still stand.

You're not going to get a different answer this week.

Last week the debts were at £12k and this week its around £13k.

Some good advice was posted last week OP, how come you haven't done anything about it ?

adg1980

Sorry all, I didn't realise my previous message was put up successfully! I'm not looking for a different answer.

My interest rates are what is bothering me, you may off a large amount and most of it is eaten by interest.

I do earn a good salary, so that isn't the problem.

Thanks for the other advise

poppasmurf_bewdley

adg1980 wrote: »

I do earn a good salary, so that isn't the problem.

No, the problem is that you are living above your means, as I pointed out above.

The main thing you need to be doing is cutting your spending at the same time as paying back what you owe.

As you say, if you are earning a good salary, then it shouldn't be a problem.

imoneyop

poppasmurf_bewdley wrote: »

As you say, if you are earning a good salary, then it shouldn't be a problem.

Except for this:

adg1980 wrote: »

my credit history isn't great.!

In what way isn't your credit history great OP? CCJ's, defaults?

adg1980

Oh no, nothing like that. I tried to apply for a loan last year and was told I couldn't because of an affiliation, which I think has something to do with my husband who has CCJs? I'm no expert on this, so I have no idea how this works - I'm assuming because we come under the same address, then this would go against me?

DCFC79

adg1980 wrote: »

Oh no, nothing like that. I tried to apply for a loan last year and was told I couldn't because of an affiliation, which I think has something to do with my husband who has CCJs? I'm no expert on this, so I have no idea how this works - I'm assuming because we come under the same address, then this would go against me?

You mean financially linked ?

Do you have a joint bank account ? Its not the address from what I believe.