Consolidating debts

Aspiration

I’ve consolidated for about 14 years. I remember the amount I owed being about £7500 and I thought a loan was the solution.

Various pay increases which meant in my head I can spend more ended up with me having multiple big loans and credit cards. 

Only last April did I finally fully begin to resolve it and pay off everything without incurring more debt. 

Please avoid consolidation. One of the best things that happened to me was not being able to refinance and paying to pay 23.9% back on an £18k credit card. I very quickly focused and realised how fragile the life was that I was living. 

Get advice above but I just wanted to share my own challenges with consolidation. 

Aspiration 

Sncjw

The lender will be assessing you on a debt of 20k. If you have a low income no way you will get that loan. Also you say you can only afford 250 a month which is what you pay now. So they will likely assess you for a higher payment due to higher debt in total. 

There is no garuntee you will use that money to pay your other debts off. Also you may end up paying more money per month..

I would post a soa to see where you could make changes to pay a bit more to the debt to help pay it off quicker. 

Jami74

Katieann said:

I would like all of these to be together so I can pay them off from one place rather than three. 

Could you open another bank account, put £250 at the beginning of each month into it and service all three debts from that? If you don't use the account for anything else it would be like paying them off from place. One deposit into the account once a month (standing order from your current account) and three direct debits out to your loans and credit card. And if you've got any extra money make extra payments to the credit card.

Langkawilady

Hi, I need some advice.  My son has a credit card debt of £9,000 which is over six years old.  He has received a letter from BPO saying that he could settle the account which is with Cabot for a credit card with Capital One for £4,500.  As you know he can pay in one lump sum or pay it back by direct debit.  He pays child maintenance and at the moment is sofa surfing so hasn't managed to find somewhere to live yet.  He is now back at work after being furloughed for six months.  What would be the least amount he can pay back monthly on the direct debit please.  Many thanks for any help you can give.  

fatbelly

Langkawilady said:

Hi, I need some advice.  My son has a credit card debt of £9,000 which is over six years old.  He has received a letter from BPO saying that he could settle the account which is with Cabot for a credit card with Capital One for £4,500.  As you know he can pay in one lump sum or pay it back by direct debit.  He pays child maintenance and at the moment is sofa surfing so hasn't managed to find somewhere to live yet.  He is now back at work after being furloughed for six months.  What would be the least amount he can pay back monthly on the direct debit please.  Many thanks for any help you can give.  

I suspect @sourcrates might move this to its own thread.

It sounds like Cabot bought this debt and BPO are their debt collector.

If this is anywhere near six years since he last made a payment or acknowledged it in writing then he should definitely leave it alone (as should you) as it will be soon going statute barred, if it's not already..

This is non-priority debt and he should really concentrate on getting his accommodation sorted. No-one can do anything while he is sofa surfing. How did he get the letter?