Alternative to 'everyday loans'

PeacefulWaters

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.

You are deluded.

When I was a targeted salesman in a bank I loved customers like you. A guaranteed increase in debt every six months. Have an overdraft. Have a loan to repay the overdraft. Have a credit card. Overdraft built up again? Have a bigger loan, pay them both off and go on holiday. Built them up again? Let's extend the term. Let's increase the amount. Let's go round again. Maybe we'll turn back the hands of time. Maybe not.

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

No idea. You'll be worse off in the short run and the long run. New debt is rarely the solution to too much debt.

matilda.cs

PeacefulWaters wrote: »

You are deluded.

When I was a targeted salesman in a bank I loved customers like you. A guaranteed increase in debt every six months. Have an overdraft. Have a loan to repay the overdraft. Have a credit card. Overdraft built up again? Have a bigger loan, pay them both off and go on holiday. Built them up again? Let's extend the term. Let's increase the amount. Let's go round again. Maybe we'll turn back the hands of time. Maybe not.

No idea. You'll be worse of in the short run and the long run. New debt is rarely the solution to too much debt.

Where in the OP did I ask for your opinion in my circumstances?
I asked a question about alternative lenders, not for comments about my beliefs in the finance system. Thanks...

I'm fed up with all the people on here who are so far up their own backsides that they think they're the messiah.

There are a handful of really helpful, non judgemental, decent people on MSE - unfortunately, they're outnumbered.

I would be foolish not to consider all of my options. It may well be that it's not an option for me....but that's not your business.

redcard

Debt consolidation wouldn't work for you - you've already admitted you'd be tempted to spend on your cards again.

Your best option is to stop buying rubbish and pay your £500 every month.

PeacefulWaters

matilda.cs wrote: »

Where in the OP did I ask for your opinion in my circumstances?

I didn't realise the forum rules stated "only answer the question, even if it's flawed". Sorry.

I asked a question about alternative lenders, not for comments about my beliefs in the finance system. Thanks...

It is an open forum. Full of differing views and opinions. You can take information with a pinch of salt. You can pay it attention. You can ask further questions. I don't ask you to like my comments. I do, genuinely, think you'd be better off considering them carefully though.

I'm fed up with all the people on here who are so far up their own backsides that they think they're the messiah.

I don't think I'm the Messiah. But I do have over 20 years experience of seeing people in your position make dreadful decisions about never ending lines of credit.

You may wish to seek out what the bloke who built this site says about consolidation loans too. He's not read your post, so you would probably consider him non-judgmental. Tell me if his views differ to mine. Using the words of Martin Lewis "Consolidation for consolidation’s sake is ridiculous".

There are a handful of really helpful, non judgemental, decent people on MSE - unfortunately, they're outnumbered.

I have outlined the best option for the circumstances you described. You might want to post on the Debt-free Wannabe board too where, if you want it, you will get day to day support in driving down your debt. They're a bit less direct there, more fluffy bunny which may suit you.

I would be foolish not to consider all of my options. It may well be that it's not an option for me....but that's not your business.

If you don't want people stick their noses in your business I'd strongly recommend not posting your business all over an Internet forum.

While I'm sorry I've upset you, I've offered genuine advice that I personally believe will make you better off if you follow it. Is that really a problem?

matttye

Whilst I think PeacefulWaters is a rude dude(tte?), I'm inclined to agree a consolidation loan isn't right for you. Let me tell you why (and demonstrate how you can put across an opinion without being a !!!!!!)...

You've already said that you think you will be tempted to spend on your cards as you're paying them down. That is exactly why a consolidation loan is no good to you.

If you'll be tempted when you've paid off a little bit of debt, imagine how tempted you'll be when suddenly all of your credit lines are open to you again.

The only time a consolidation loan is advisable is when the borrower can be really strong and not be tempted to re-spend newly available credit, but also if the consolidation loan APR is less than that of their existing debts - ie it would save you money in interest.

matilda.cs

matttye wrote: »

Whilst I think PeacefulWaters is a rude dude(tte?), I'm inclined to agree a consolidation loan isn't right for you. Let me tell you why (and demonstrate how you can put across an opinion without being a !!!!!!)...

You've already said that you think you will be tempted to spend on your cards as you're paying them down. That is exactly why a consolidation loan is no good to you.

If you'll be tempted when you've paid off a little bit of debt, imagine how tempted you'll be when suddenly all of your credit lines are open to you again.

The only time a consolidation loan is advisable is when the borrower can be really strong and not be tempted to re-spend newly available credit, but also if the consolidation loan APR is less than that of their existing debts - ie it would save you money in interest.

I'm aware of the dangers of consolidation, but I would remove all other streams of borrowing, preventing the chance of using them again.

I'd rather pay a little more each month and only pay one creditor than to pay differing amounts each month to 6 creditors... That's the reason for consolidating.

redpete

matilda.cs wrote: »

]I'm fed up with all the people on here who are so far up their own backsides that they think they're the messiah.

There are a handful of really helpful, non judgemental, decent people on MSE - unfortunately, they're outnumbered.

The language might have been a little blunt but the advice was sound and in your best interests.

I would be foolish not to consider all of my options. It may well be that it's not an option for me....but that's not your business.

Someone goes beyond answering your questions and gives relevant and useful advice that will help make a difference to your situation. It explains that you have more useful options than you are considering. In your position I would be grateful not resentful.

Paying extra for the convenience of having one payment is not worth it.

There are competitors to Everyday Loans for people in your situation but they will all charge 'mental' interest rates.

You can avoid the temptation to continue using the existing accounts by cutting up the cards and getting them to reduce your credit limits.

Snowballing the debts is the quickest and cheapest way of dealing with them (unless you can borrow from friends or family - but few people would advise that).

That all addresses issues you raised in your OP and is no different to the advice given by PW.

PeacefulWaters

matttye wrote: »

Let me tell you why (and demonstrate how you can put across an opinion without being a !!!!!!)...

Ah, you failed right there.

I had already explained it in pretty straight forward terms earlier in the thread. Somebody didn't want to hear it so I tried another approach.

When I said "let's go round again" I didn't realise we'd been here before.

https://forums.moneysavingexpert.com/discussion/comment/65559413#Comment_65559413

redcard

matilda.cs wrote: »

I'm aware of the dangers of consolidation, but I would remove all other streams of borrowing, preventing the chance of using them again.

I'd rather pay a little more each month and only pay one creditor than to pay differing amounts each month to 6 creditors... That's the reason for consolidating.

You're also aware of the dangers of spending on your cards again once you'd paid them off....

You wouldn't destroy your cards, you'd keep them in a drawer 'just in case'.

SnowTiger

matilda.cs wrote: »

I'm aware of the dangers of consolidation, but I would remove all other streams of borrowing, preventing the chance of using them again.

I'd rather pay a little more each month and only pay one creditor than to pay differing amounts each month to 6 creditors... That's the reason for consolidating.

If I were you I'd take the £500 a month and use it to pay standing orders to my creditors, making sure they're sufficient to pay more than the minimum required. You could make all the payments on the same day and pretend it's a loan.

Well, I wouldn't quite do it that way. I'd leave Direct Debits in place to pay the minimum and make additional payments by Faster Payments, however that does require more discipline.