Consolidation?

ctlfc

Hello

I am currently considering whether to get a personal loan (£5000) to clear a number of smaller debts in an attempt to improve my credit file. I would be clearing;

Credit Card (3k)
Store Card (£500)
Couch Finance Loan (£1300)
Wardrobe Finance Loan (£400)

I would be paying roughly the same amount of interest PCM but the monthly payments would decrease from £150 to around £90 (depending on the loan rate offered)

Any thoughts on whether this would make my credit file more attractive to lenders (particularly mortgage lenders) would be greatly appreciated.

Thanks

System

Most stupid idea if you're paying the same interest rate. You end up paying more in the long run.

Debt consolidation rarely works because people just go blow the freed up money on more credit. The credit card would most likely be the first thing to start getting walloped again.

It won't make it more attractive to mortgage lenders because you'll still have the same amount of debt but it'll be newer debt.