Loan/Car finance

gaukyclaire

I am wanting to consolidate my credit debt by taking a loan out, and I am also looking to purchase a new car in a few months (either on pcp or car finance). Would taking out the loan to consolidate my debt effect my chances of buying a car? 

[Deleted User]

Yes. Consolidation is also the highest risk form of borrowing and will attract high rates.

You'd do better to visit the DFW boards for advice on getting rid of the debt before considering adding to it. 

DCFC79

gaukyclaire said:

I am wanting to consolidate my credit debt by taking a loan out, and I am also looking to purchase a new car in a few months (either on pcp or car finance). Would taking out the loan to consolidate my debt effect my chances of buying a car? 

You say credit debt, credit card yes ?

What caused the debt ?

Just normal spending ?

Consolidation is rarely a good idea unless your disciplined enough to stick to the plan so that means no more spending on the cards, if you do then you will need to cut back on your spending.

gaukyclaire

A pay rise has meant I can pay off more but I am occurring 18.33% interest on my cards, where the loan rate is 3% so unsure what to do, but I haven’t spent on my credit cards for over 6 months now and chipping away at the debt.