Consolodating debt

MartialArtMan

I believe the general consensus on here is not to do it but I am at the end of my tether and living life on the brink of going bust. I have a c/c £3800, Loan £3500, od £2500, plus a couple of bits here and there.

I'm really feeling the strain now cos of the bank charges reclaim fiasco at the moment I was relying on getting that money soon!

The debts are so large that I can't just hack away at them, anyway I can barely afford to live let alone pay off my debt. I'm considering getting a £10000 loan and just paying the lot off.

shezzy

Are they secured loans? If not i really would'nt go down that avenue, been there and done it! If they are not secured get together a budget plan showing incomings and out goings and offer them all as much as you can afford even if i'ts only a pound for now.

shezzy

itsnowtime

Hi,

In my opinion Unsecured Consolidation Loans can work providing you are not going to get yourself trapped in the circle of debt again. There's no point clearing a credit card debt if you are going to start using it again.

I say this in the nicest possible way as one (and there's many) of the reasons I got myself into a pickle was I used consolidation loans to get me out of sticky situations and eventually ended up where I am today.

But, I do believe if they are used for the right reasons and you don't intend to build up anymore debt then it might be the best way to go.

Lots of people will give you advise and support on here - good luck

rayday2

Well I took out a secured loan for 16k, paid it for two years supposed to be over 10 years and asked for a settlement turns out I owe 17.3k and I don't think I am alone.

Also remember interest rates on those things go up and up our mortgage was with a specialised lender at 8.4% and teh loan had started off at 8.7 and gone up to 10.5% they need very serious consideration and I feel a right idiot for taking one out.

beckiem

try the cccs website they could set up a debt management plan you give them all the details of income and outgoings and they tell you what youve got left and they contact your creditors then you pay them money (cccs) and they split it between all of them they dont charge for the service ive got one with them i pay them £221 a month and they split it between 8 creditors it put my mind at rest sorry if it doesnt make complete sense im a bit tired

southernscouser

Consolidation loans can be cost effective providing you have addressed the issue of why and where you are overspending.

I think most people say to avoid them because we have been burnt many times by them. But you have to remember it's us that is the problem, not consolidating loans.

Work out what is more cost effective using this calculator and how long each method will take to be debt free. Take into consideration what your priorities are. Is it being debt free as soon as possible or the lowest monthly payment possible?

Have you considered a low life of balance credit card? That way you are able to overpay each month without facing early payment penalties. There are pros and cons to each. Work out what best suits you.

MartialArtMan

Thanks everyone. The loan would be unsecured. It really is the only solution I can see. I just can't afford the monthly repayments of all the separate debts, but putting them all together over a longer period I should be okay. I just can't see any other way out....

postingalwaysposting

MartialArtMan wrote: »

Thanks everyone. The loan would be unsecured. It really is the only solution I can see. I just can't afford the monthly repayments of all the separate debts, but putting them all together over a longer period I should be okay. I just can't see any other way out....

martial, thats fine but what happens if you dont close all yoru credit cards down? and then the emergency card, kept just 'incase' turns into a pub lunch, oh a new washing machine ~ for example. if however you keep to just the one payment and dont apply/take on more debt then thats fine and i wish you all the best. But please be aware of the pitfalls, may on here have been through it :rolleyes:

rog2

MartialArtMan wrote: »

Thanks everyone. The loan would be unsecured. It really is the only solution I can see. I just can't afford the monthly repayments of all the separate debts, but putting them all together over a longer period I should be okay. I just can't see any other way out....

Have you talked to CCCS, CAB or Payplan? There is ALWAYS another solution.
It won't COST you anything to at least talk to them.

lightatendoftunnel?

MartialArtMan wrote: »

Thanks everyone. The loan would be unsecured. It really is the only solution I can see. I just can't afford the monthly repayments of all the separate debts, but putting them all together over a longer period I should be okay. I just can't see any other way out....

Good luck with which ever way you decide. I would really sit down and go through each option with fine tooth comb. I consoladated debt when I couldn't manage the payments. Then 2 years later i was in the same mess. I now owe major amounts and went to CAB (when i had my lightbulb moment), they have helped me massively. Hope it works out for you.

postingalwaysposting

rog2 wrote: »

Have you talked to CCCS, CAB or Payplan? There is ALWAYS another solution.
It won't COST you anything to at least talk to them.

totally agree, just look into other options. You dont have to be binded to a charity/debt plan, but its nice to get a 'professional' slant on what you can personally do about this situation. No matter what you choose we will all be here and able to support you through the good/bad times. Take care whatever you choose