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Debt consolidation question

Houndog6105
Houndog6105 Posts: 141 Forumite
Fifth Anniversary 100 Posts Name Dropper
in Loans
When I'm applying for a loan it asks what the loan is for.
If I select it's for debt consolidation will they reject me as I'm basically saying I'm in debt so why would they want to loan me the money in the first place
Or should I just put it's for a new car instead?
«1

Comments

  • boo_star
    boo_star Posts: 3,202 Forumite
    Part of the Furniture 1,000 Posts
    You should put down the truth, anything else is fraud.
  • System
    System Posts: 178,376 Community Admin
    10,000 Posts Photogenic Name Dropper
    Houndog6105 wrote: »
    When I'm applying for a loan it asks what the loan is for.
    If I select it's for debt consolidation will they reject me as I'm basically saying I'm in debt so why would they want to loan me the money in the first place

    They already know you're in debt when they check your credit file.
    This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com
  • Houndog6105
    Houndog6105 Posts: 141 Forumite
    Fifth Anniversary 100 Posts Name Dropper
    Interest rate goes up though for selecting debt consolidation
  • Sncjw
    Sncjw Posts: 3,582 Forumite
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    It could go up anyways if you select for a car. The rate you see for the product doesn’t mean you will get it
    Mortgage free wannabe 

    Actual mortgage stating amount £75,150

    Overpayment paused to pay off cc 

    Starting balance £66,565.45

    Current balance £56099

    Cc around £3200 

  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Houndog6105 wrote: »
    Interest rate goes up though for selecting debt consolidation

    Any other purpose they might decline you or charge an even higher rate.
  • Gaz83
    Gaz83 Posts: 4,047 Forumite
    1,000 Posts Combo Breaker
    Houndog6105 wrote: »
    Interest rate goes up though for selecting debt consolidation
    It's your risk.

    Applying for a loan and lying about the purpose is fraud.

    Will they find out? Maybe not, as long as you pay it off.

    But if you don't, and they find out you lied about it all along... well, then you're in for a world of hurt - CIFAS markers and the like.
    "Facism arrives as your friend. It will restore your honour, make you feel proud, protect your house, give you a job, clean up the neighbourhood, remind you of how great you once were, clear out the venal and the corrupt, remove anything you feel is unlike you... [it] doesn't walk in saying, "our programme means militias, mass imprisonments, transportations, war and persecution."
  • -taff
    -taff Posts: 15,424 Forumite
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    GO to the debt free wannabe board instead of getting yourself deeper in debt.
    Non me fac calcitrare tuum culi
  • DCFC79
    DCFC79 Posts: 40,641 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Are you sure its a wise decision, how much are the debts and how much are you asking for ?
  • Houndog6105
    Houndog6105 Posts: 141 Forumite
    Fifth Anniversary 100 Posts Name Dropper
    My debts total about 9k
    4k is on an interest free card for 28 months.
    Was trying to get a loan for 5k at low interest to pay off the rest of the credit cards and store cards I have
    I'm paying crazy interest on 3k of the 5k outstanding so that's why I was trying for the loan but unfortunately I got refused anyway
    Just have to keep plodding on till I get that 5k done
  • enthusiasticsaver
    enthusiasticsaver Posts: 16,138 Ambassador
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    Pay minimums on the 0% cards and throw as much as possible to the expensive ones. Debt consolidation never helps in getting rid of debt. You need to change your spending habits.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.

    Click on this link for a Statement of Accounts that can be posted on the DebtFree Wannabe board: https://lemonfool.co.uk/financecalculators/soa.php

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