Debt Consolidation the Answer??

Pixie5740

I agree with the others.

1) Borrowing more money to become debt free is rarely the answer.

2) Judging by those interest rates you're already in sub-prime borrowing territory so finding a lender who will offer a half decent rate is going to be nigh on impossible.

In your situation I would join the Debt Free Wannabe board for budgeting support and advice. If you're struggling to repay your debts contact one of the debt charities such as Step Change, Cap or PayPlan. They can go through your options with you.

As an aside I find it quite amusing that our advice on the Loans board is usually "don't borrow money"

ratrace

jonesMUFCforever wrote: »

Wow that is some post!
I would never ever lend money to friends or family - it always ends in tears.
I would help in other ways such as help them budget and tell them where to get professional help such as CAB etc.

Well it all depends really on the type of people you are dealing with

From a personal experience i have lent out fairly large sums to friends and my brothers to pay some debt off and over the agreed time always been paid back they know the amount of interest they have saved on the whole its a Lot!

i suppose each to their own personally op i would say try to borrow £500 from good decent friends to pay off all the debt then cut up all the cards and NEVER get a payday loan again and grateful of the amount you have saved (interest) by going down this route

that what i would do (the trick here is to find people who will not miss the £500 for a year or so)

good luck

jonesMUFCforever

Do you really think OP would cut the cards up if he found 5 fools/friends/family to bail him out?

ratrace

Well it all depends on how much of a impact the debts had on op

We have a set up (letting the secret out here) where we help each other out no matter what it does help that we are quite tight nit

to get a better idea it works like this

20 people (friends and family) each pay £50 a week in a pot and have a member number (1-20 depending on how desperate they are for the money most are not and can wait for a while)

Once the pot reaches the sum of £2600 (£50x20 = £1000 x2.6/7 weeks =£2600) which is about (£50x52) member number 1 is paid that amount after a about under 3 weeks but continues paying £50 each week until he has repaid the £2600 at the end of the year ALL INTEREST FREE

and then member no 2, 3 etc.........

the advantage all members have with this set up is that they can have a lump sum up front interest free to buy or pay off things like sofas, cars cc's etc... or as some members just use it as means of saving and they are always last to receive the lump sum

All im trying to say is that it can be really hard if you try to go at it alone its always better to pool/work together and help each other out

all interest free (I just paid for my car outright no loan cc or anything just using this system)

SeduLOUs

ratrace wrote: »

Well it all depends on how much of a impact the debts had on op

We have a set up (letting the secret out here) where we help each other out no matter what it does help that we are quite tight nit

to get a better idea it works like this

20 people (friends and family) each pay £50 a week in a pot and have a member number (1-20 depending on how desperate they are for the money most are not and can wait for a while)

Once the pot reaches the sum of £2600 (£50x20 = £1000 x2.6/7 weeks =£2600) which is about (£50x52) member number 1 is paid that amount after a about under 3 weeks but continues paying £50 each week until he has repaid the £2600 at the end of the year ALL INTEREST FREE

and then member no 2, 3 etc.........

the advantage all members have with this set up is that they can have a lump sum up front interest free to buy or pay off things like sofas, cars cc's etc... or as some members just use it as means of saving and they are always last to receive the lump sum

All im trying to say is that it can be really hard if you try to go at it alone its always better to pool/work together and help each other out

all interest free (I just paid for my car outright no loan cc or anything just using this system)

Sounds fantastic.

Until someone loses their job and can't contribute anymore.

Or someone falls out with someone. Or someone dies.

Eventually, for whatever reason, the system will collapse, and some members will be left out of pocket when it does.

ratrace

SeduLOUs wrote: »

Sounds fantastic.

Until someone loses their job and can't contribute anymore.

Or someone falls out with someone. Or someone dies.

Eventually, for whatever reason, the system will collapse, and some members will be left out of pocket when it does.

You do have a point about the job loss side but like i have stated we are tight nit and help each other out

As far as falling out with someone well this is highly unlikely as there is only two people who are in charge of the system and all the payments are via standing order so members dont really come in contact when giving its not physical cash that is handed over and a certain place and point

we started this when one of the member(my brother) got turned down for a loan he wanted to buy a few items for his house so he sought to find a solution which led to this

5 years on and its still going good

dealer_wins

ratrace wrote: »

You do have a point about the job loss side but like i have stated we are tight nit and help each other out

As far as falling out with someone well this is highly unlikely as there is only two people who are in charge of the system and all the payments are via standing order so members dont really come in contact when giving its not physical cash that is handed over and a certain place and point

we started this when one of the member(my brother) got turned down for a loan he wanted to buy a few items for his house so he sought to find a solution which led to this

5 years on and its still going good

Ratrace I can only say you must have the best family and friends in the world!!

jonesMUFCforever

Sounds like you have an idea there for a Ponzi scheme.

theoretica

So really all you have is the equivalent of saving £50 a week each with peer pressure to ensure you do?

SeduLOUs

theoretica wrote: »

So really all you have is the equivalent of saving £50 a week each with peer pressure to ensure you do?

Sounds like it, with severe restrictions as to when you can get at your money (as someone else might be using it) and no real benefit or interest for investing.

I wonder if the two 'people in charge' are collecting interest on the money while it is being saved up ready to dish out.

Disaster waiting to happen.