Consolidation loans

Jm82

Any advice on consolidating a few things please with not great credit? Thank you

glentoran99

one word


don't

DCFC79

Don't do it.

There's no guarantee you will get a loan to pay off the current ones.

Look at your spending and cut back, reduce the bills.

Consolidation loans don't exist.

iolanthe07

Consolidation loans rarely work unless you're very disciplined and focused. The debtfreewannabe forum is full of people who have consolidated over and over again only to end up in even deeper debt. The problem seems to be that consolidating gives you the illusion that you have paid off your debt, when all you have done is to move it, often for a longer period, so you pay more interest and then go on taking out more loans. The debtfreewannabe forum is great for people in debt, with all sorts of non-judgemental support and helpful advice.

Deadbeat

I fell in to that same trap. Twice.

Eventually I got out, and learned it would have been much better to deal with the original debts as they stood and not 'refinanced' them out of mind.

Can I suggest you have a look at the Debt Free Wannabe board? The people there have lots of great advice on getting out of debt.

Caz3121

2 main issues
1) with 'not great credit' you may find that any loans available to you would be at a higher rate than your current debts so you end up paying even more
2) as there is no guarantee you will use the loan to pay off the existing debts then your existing liabilities will be added to the new when calculating affordability so if you owe £15k and want to borrow £15k, you will need to have the income to cover debt of £30k

in addition many find they don't stop spending on the cards etc so just end up in an even worse financial mess

Plenty help available on the Debt Free board for those that are keen to address their current finance issues without taking on further debt

robatwork

Depends.

If it's a loan from your parents so you can consolidate your debts and pay them all off, just owing your parents money, then it may be a fantastic idea.

If it's a "company" then it's almost certainly a terrible idea.

Have a read through here and on the debt-free forums - the idea being you should split your debt into things you NEED to pay in full monthly, those you can negotiate with, and those you may be able to defer.

Plus all the stuff about stopping spending beyond your means which you already know....

burlington6

robatwork wrote: »

Depends.

If it's a loan from your parents so you can consolidate your debts and pay them all off, just owing your parents money, then it may be a fantastic idea.

If it's a "company" then it's almost certainly a terrible idea.

Have a read through here and on the debt-free forums - the idea being you should split your debt into things you NEED to pay in full monthly, those you can negotiate with, and those you may be able to defer.

Plus all the stuff about stopping spending beyond your means which you already know....

If you think the op will pay off their parents I suggest you never lend anyone money

robatwork

burlington6 wrote: »

If you think the op will pay off their parents I suggest you never lend anyone money

Where did I say that I thought they would pay off their parents?

I suggest you read and comprehend a bit more thoroughly.

Here's the clue:

"just owing your parents money"

glentoran99

robatwork wrote: »

Where did I say that I thought they would pay off their parents?

I suggest you read and comprehend a bit more thoroughly.

Here's the clue:

"just owing your parents money"

So your suggesting he borrow with no intention of paying them back? Just because its his parents?

robatwork

glentoran99 wrote: »

So your suggesting he borrow with no intention of paying them back? Just because its his parents?

What is it this weekend with people ascribing things to me I didn't say? I blame Cameron.

I'm suggesting that a loan from a parent would be much more flexible, hopefully interest-free, and less likely to result in court action or bankruptcy/CCJ.

As said parent, if my offspring was in this position and paid back on time, regularly, I may even at some point forgive the loan.

In any case the OP is a typical "post a one line Q and never come back" type so it's all moot.