Consolidation Loan?

dav_blackpool

Hi Guys,

Now, here's a fairly long winded post, so please bear with me...

I've recently paid all of my debts off bar one, which I am quite proud of, as they consisted of an unauthorised o/d, 2 credit cards and a mobile phone contract heading towards default.

I stupidly took out a Provident loan also, to cover some unexpected car costs silly me this is currently sitting at around £650 balance with the interest... and also owe Littlewoods around £800 that I'm not doing well on getting down, as every time I pay they're adding late payment charges etc.

However, here's the plan I came up with:

I've applied for a loan with Welcome Finance, I know I've heard bad reports about them, however I can afford the repayments as it will be cheaper than paying all of my remaining debts now.

The loan is £1800 over 3 years, with no payment protection (which unsurprisingly cost me about £30 p/m less than with it on), and no early redemption charges.

Total cost = £3000 for this loan.

I know its a lot, but I'm starting a new job aswell at the start of next month with a bigger salary and fantastic bonuses, so my plan was to take on this loan, pay off my Provident and Littlewoods, using the oustanding money to service and MOT my car, then pay more off once my salary and possibly bonuses come thorugh.

I just want to get rid of Littlewoods off my back, I'm depserately trying to improve my Credit File, as it's flagging, so thought this would be the best way?

Does anyone else think this is a good/bad idea? or possibly have any other advice?

Many thanks for all your help in advance,

David x

rog2

Welcome Finance - Bad idea. The phrase that comes to mind is 'Don't Touch them with a ten Foot Barge-Pole'.
Sorry - but you did ask.
I understand that you want to get Littlewoods 'off your back' but there are other ways to do this - Have you spoken with CCCS or The National Debtline, who will give you FREE professional advice about your options?
Taking a loan with Welcome Finance is going to do ABSOLUTELY NOTHING to improve your credit rating.

fatbelly

The Provi loan has interest front-loaded so there's no point moving this debt - just pay it off at a rate you can afford.As for the £800 with Littlewoods, I'd be looking at a Super balance Transfer into your current account from a 0% card that does SBTs (see https://www.stoozing.com/cards) if your credit rating is good enough. Then pay off Littlewoods and try to clear the card over the length of the 0% deal.Definitely avoid Welcome.