Need advise please

DCFC79

IF you take the consolidation you really should sort out the reason why you got into debt otherwise its not worth doing if the debt gets built up again.

A4445

I don't recommend consolidation either. I did it so many times and then spent on my cards again. I ended up bankrupt and don't recommend this it was very stressful. You need to get to the cause of the overspending.

Moneymash

Please don't consolidate your debts, people usually run up new debts from another source. I consolidated once and it doesn't work.

What has the money been spent on, have you got things to sell?

MrsTinks

Matesy people here are genuinely trying to help - but ultimately all we can do is advise. SO far we have nothing to go one apart from the possible debt total - we can't tell you how you should deal with it because we have no other information.

Many of us have dealt with mental health issues, either ourselves or through friends in debt or on the boards here. Whilst we are all sympathetic then us saying: "there there... it'll all go away by it self" sadly just isn't helpful, and most importantly neither is it true.

The reason we need to know HOW you ended up here, is because often the how and why can affect the solutions. If it was a massive event that kick started the debt and it snowballed because you couldn't stay on top then we would advise differently to just living beyond means for example. It's not to judge, it's to help you find the best advice.

Some times people will be blunt on here. Including me. We try to be friendly but sometimes we get frustrated when people want help, but it feels like they then don't want to listen... when you give your time, experience and expertise for free then it can get a little grating at times.

Practical stuff:
It sounds like you have consolidated before. It didn't work did it? It rarely does for any of us. Please don't consolidate again unless you also cancel the cards you consolidate and chop them up into tiny pieces.
You say that you're paying your bills, but it's the lack of extra cash - I'm sorry but I need to take this one apart: if you are taking care of bills then where did this debt come from before the holiday? It's not us judging you, we really really need to know so we can work out how you can move forward.

Please give us a full SOA so we can start to pull out the details and see what we can do to help you.

National_Debtline

Hi Matesy


I don't know if you feel reticent about posting again, but if you have returned to read this thread, please, please, do ensure that you get some independent advice from one place or another. You can seek that advice from any of the established debt charities in total anonymity.


If it makes life easier for you on here, you could just set up a brand new profile and explain your situation as it stands right now - just the plain facts of the debts and your current finances, with none of the background. Yes, sometimes a bit of context can help our understanding of your predicament, but there is no requirement on you to justify it before you can get support.


For what it is worth, consolidation loans are very unlikely to be available, so it's a moot point whether they are a good idea or not. A lender would be treating your application as if you owed both the loan and the original debts, as they cannot force you to use the loan to pay those debts off, hence further rejections would be very likely.


Good luck


Dennis
@natdebtline

enthusiasticsaver

No one judges you matsey. Anyone who has been in serious debt knows it is easy for bad situations to escalate until it gets to a point where no more borrowing is possible (apart from payday loans or lenders who lend at extortionate rates -please please do not go there). I think you must be at that point now.

I am assuming that 0% credit cards are not an option so to move forward the only option now is to stop using the cards and cut outgoing a to the bone. Getting into debt takes a long time and getting out of it will be difficult but worth it in the long run both for the sake of your health and finances. Posting an soa will help us identify areas to save but I suspect you already know where your money is going. To reduce the debt you need to pay more than minimum on the credit cards and start by targeting the card or loan with highest interest rate first and then snowball as debts paid off. I do hope you take the advice given here with out taking offence.

lazer-zxr

Don't you think us forumites need to open our mind a little regarding debt consolidation? Sometimes it's a great option.
I understand consolidation isn't for everyone ..... but a lot of people seemed to dismiss it as a no go area ... when in fact it is a good option to explore.

I'm recovering from £52k debt and achieving it much more efficiently due to a lower interest consolidation loan. Moving my debt from as high as 6.8% down to 3.8% has saved me a lot of money .... and it's much easier dealing with one bank loan.

I'm now on the final straight. Consolidation is working for me and I do recommend it ..... please don't shut off this option to dfwbs as I know that it would've cost me more money.

Jon_B_2

lazer-zxr wrote: »

Don't you think us forumites need to open our mind a little regarding debt consolidation? Sometimes it's a great option.
I understand consolidation isn't for everyone ..... but a lot of people seemed to dismiss it as a no go area ... when in fact it is a good option to explore.

I'm recovering from £52k debt and achieving it much more efficiently due to a lower interest consolidation loan. Moving my debt from as high as 6.8% down to 3.8% had saved my a lot of money .... and it's much easier dealing with one bank loan.

I'm now on the final straight. Consolidation is working for me and I do recommend it ..... please don't shut off this option to dfwbs as ifor is done that it would've cost me more money.

Broadly speaking, I personally wouldn't disagree.

The caveat being, that to make consolidation work - it requires a thorough understanding of the household budget. For example it looks as though with the limited information provided that they are chronically overspending - therefore consolidation is looking unlikely to succeed.

Secondly, consolidation requires a huge amount of willpower and discipline. That means cutting up cards, closing accounts and tempering any impulse purchases. For the most part - people who are in substantial debt have problems with managing budgets and not overspending - therefore consolidation is only ever doomed to fail.

Like you, I personally know people who have succeeded with consolidation. However at a guess I'd hazard only 10 - 20% of people in debt succeed through the consolidation method.

Finally - if done properly consolidation is actually a highly efficient tool at reducing debt quickly for the reasons mentioned - lower monthly payments which helps the household budget, plus lower rate of interest, so more of your cash pays off the debt.

MrsTinks

lazer-zxr wrote: »

Don't you think us forumites need to open our mind a little regarding debt consolidation? Sometimes it's a great option.
I understand consolidation isn't for everyone ..... but a lot of people seemed to dismiss it as a no go area ... when in fact it is a good option to explore.

I'm recovering from £52k debt and achieving it much more efficiently due to a lower interest consolidation loan. Moving my debt from as high as 6.8% down to 3.8% has saved me a lot of money .... and it's much easier dealing with one bank loan.

I'm now on the final straight. Consolidation is working for me and I do recommend it ..... please don't shut off this option to dfwbs as I know that it would've cost me more money.

When someone first comes to DFW they are rarely at the END of their debt journey. Many are desperate for a quick fix, they may or may not have really had their LBM yet... most have not.

Until you truly understand your debt and how you accumulated it then consolidation will give you a "quick fix"... guess what? No-one cancels those cards...

When you are firmly on the path, you have adjusted to living on a budget, no longer need to take additional credit regularly to make money and month match... THEN consolidation and getting the CHEAPEST debt is absolutely perfect. By then it's a good chance that you have also partly repaired your credit file and are likely to get better rates (I'm now at a point where I get the top 0% offers thrown at me... Barclay appear DESPERATE to lend me money, shockingly I'm not keen ) - the point is that rarely is consolidation the right solution in the beginning of a debt journey. It takes huge self control and 99.9% of us ended up here because no matter how we started in debt, then often a little bit more couldn't hurt... right?

enthusiasticsaver

lazer-zxr wrote: »

Don't you think us forumites need to open our mind a little regarding debt consolidation? Sometimes it's a great option.
I understand consolidation isn't for everyone ..... but a lot of people seemed to dismiss it as a no go area ... when in fact it is a good option to explore.

I'm recovering from £52k debt and achieving it much more efficiently due to a lower interest consolidation loan. Moving my debt from as high as 6.8% down to 3.8% has saved me a lot of money .... and it's much easier dealing with one bank loan.

I'm now on the final straight. Consolidation is working for me and I do recommend it ..... please don't shut off this option to dfwbs as I know that it would've cost me more money.

It works only if the borrower does not use it as a quick fix and starts to live within their means. The difficulty if someone uses it to repay credit cards and then continues to overspend is that the LBM is delayed as such as the bad spending habits continue. In other words it works IF the borrower gets a loan for a lower interest rate and structured repayment and then Stops using credit cards and overdrafts. Rarely happens but well done if that is what you are doing.