Alternative to 'everyday loans'

matilda.cs

Hi all,

I've been looking at consolidating some debts (varying credit cards/finance at £9000)
My credit report according to noddle (yes. I know it's not relevant) is 1/5
I know my report is rubbish, due to 'revolving debt'
That said, I'm now in a position to start paying £500 a month consistently. If I stick with my current lenders, I worry that's temptation will get the better of me, and I'll use my cards.

My thoughts are, that I'll consolidate, and close all other revenues of credit. My questions is....who competes with Everyday Loans? Their apr is mental, and I don't wanna get more Into debt!

I'm happy to pay a little over my current apr and enjoy a single lender, but loads more is counter productive..surely there is someone out there who'll compete with them?

PeacefulWaters

It sounds like if you consolidate you'll just build up new debts. It's time to get a grip on your approach to money.

I worry that's temptation will get the better of me, and I'll use my cards

1. Don't.
2. Cut them up.
3. Pay the £500 a month off the highest rate debt.

Act like a grown up and you could be debt free within 2 years. Act like a fool and you'll owe £15k by then.

CLAPTON

what are your debts
what are their APRs
what are the minimum monthly payments


how much do you earn

matilda.cs

I've used the snowball tool, and I'm aware that getting a consolidation loan would be higher apr, but that said, I feel is better for me.

My question was, are there lenders out there who compete with Everyday Loans? My credit isn't great, hence not using a mainstream lender.

MEM62

matilda.cs wrote: »

I've used the snowball tool, and I'm aware that getting a consolidation loan would be higher apr, but that said, I feel is better for me. It is unlikely that it would be.

My question was, are there lenders out there who compete with Everyday Loans? My credit isn't great, hence not using a mainstream lender.
Given your situation you may struggle to secure any lending unless it is at silly rates. Take the advice and repay your debt as it is currently structured - throwing money at the highest APR first.

There is no easy way out of this. You have to work at paying and resist the temptation to keep borrowing.

poppasmurf_bewdley

If Noddle is giving you a rating of 1/5, then I think your chances of getting a loan at anywhere near a reasonable rate of interest are about zero.

Whilst appreciating that the Noddle score means zilch, the fact that they have indicated 1/5 shows there must be several negative entries on your credit record.

Gaz83

High APR loans are a consequence of a poorly managed credit history. There aren't any companies who offer low-APR loans to people in your position.

matilda.cs

My credit rating is poor due to number of creditors and revolving credit. I've had no missed payments, etc.

Thanks anyway

Foxy-Stoat_3

Best thing to do is pay the minimums to all the lowest interest cards and overpay the most you can afford at the highest interest card. Once the payment has cleared, reduce the credit limit accordingly, that way you won't be able to borrow again.

Make sure you have enough credit to take the next month's interest or you will go over.

Good luck, there is no quick fix unless you win the lottery!

Gaz83

matilda.cs wrote: »

My credit rating is poor due to number of creditors and revolving credit. I've had no missed payments, etc.

Thanks anyway

It doesn't really matter what the reason is, the end result is still the same - a poorly-managed credit history results in sub-prime offers of credit. That's the consequence, regardless of the reason for having the credit history in the first place.

It's nothing personal. But it's a question that's asked on here a lot - "I have poor credit but want a loan, are there any providers that don't charge extortionate APRs?" - and the answer to that is invariably no. It's too much of a risk for a lender to offer a sub-prime client a loan at a prime rate. The risk of default is too high.

DCFC79

Take control of your finances, taking a consolidation loan may not even work, be easie to cut the cards up and follow previous advice.