Consolidation loan, best deal?

Gavin234

I'm looking to put about 9k into one manageable consolidation loan, which are the best deals please?

I know some charge inordinate set up fees, but long term is it still worth it?

I have 3 different cc debts and an overdraft, all messy and sometimes miss payments, I'm looking for somewhere to put them all into one, pay them all off and then just have one payment every month?

Suggestions please?

[Deleted User]

Probably none.

What are your debts, rates, income and credit history like?

Gavin234

There are so many companies so many options, how to know what to go for?

Gavin234

One chap on the phone talked me into a consolidation loan, really pushing me to pay the start up fee right now, but I want to think about it.

PeacefulWaters

I'd suggest:

1) Not getting a consolidation loan.

2) Not getting a consolidation loan that requires any sort of set up fee.

3) Getting a grip on your payment schedules to ensure you never miss another credit card payment.

4) Posting on the Debt-free Wannabe forum to ask for help around budgeting and managing down your debt.

Don't shuffle the debt around. Get on top of it.

19lottie82

Thank goodness for that. A "start up fee"? What company was this?

Chances are it wasn't actually a lender, but a loan broker and after you pay £70 or there abouts they will "find you a loan" with another company at a horrendous APR. Don't do it.

Without even knowing your specifics I'm 99% sure a consolidation loan is a bad idea in your situation, if you can even get one without an eye watering interest rate, that would completely miss the point of consolidating?

How much do you owe in total and what's the APR on each debt?
What's your annual salary? Do you have any missed or late payments on your debts?

Even if you could get a loan with OK interest, chances are it won't work in the long term as your mentality to debt won't have changed and you'll just run up the cards / overdraft again. I'm not meaning to be patronising here, it's a cold hard fact.

Head over to the debt free wannabe section of the board, they're very helpful and should be able to help you look for ways you can increase your income / reduce your outgoings to help you clear your debt in the quickest way possible.

poppasmurf_bewdley

Gavin234 wrote: »

There are so many companies so many options, how to know what to go for?

You are looking for a consolidation loan. Yes, there are lots of companies out there waiting to lure you into their grasp.

Sounds like you've already encountered one of them who talked about a 'start up fee'. You've had a lucky escape. There was no loan there waiting for you.

You mentioned in your first post that you "sometimes miss payments", so that's something that will be on your credit file and will be a massive minus for you when looking for credit.

Have you tried any of the mainstream banks? Or have you already decided your credit is too bad that only the bottom feeders will touch you?

Consolidation loans seldom work unless you are prepared to cut up those cards and close the accounts and overdraft. And a consolidation loan nearly always attracts an additional premium interest charge.

Your best bet is to publish a statement of accounts on here, and we maybe able to help you to control your spending and pay back what you owe.

Hazzinho

£9k loan plus £9k debt=£18k. £18k x 2=£36k, you will need to be earning over £36k to have any chance of lenders providing you with another £9k of debt. There is no such thing as a consolidation loan it's just another loan to banks.

dealer_wins

OP in your situation you will not get a £9k consolidation loan. Post on the "debt free wannabe" board for good advise about how to tackle your debts and budgeting.

DCFC79

Gavin234 wrote: »

One chap on the phone talked me into a consolidation loan, really pushing me to pay the start up fee right now, but I want to think about it.

Who was it ?

Don't agree to paying the start up fee, I bet it wasn't a reputable lender and you will end up paying more for it.

Setup a DD so you don't miss the payments.

chesky

The OP has gone awfully quiet.