Combining loans 3 May 2021 at 7:19PM in Loans 6 replies 351 views

Katieann

Hi, I have two loans from two different banks and a credit card from Aqua. Is there a way to combine them all so I can just pay a one off payment each month. I get so confused with the current system of two direct debits and then having to make a payment to Aqua and would rather do a lump payment each month. Any advice would be great, thank you

[Deleted User]

You'd need to consolidate with even more borrowing, but it's not a good idea.

Just set up a direct debit to manage your card payment if you struggle to pay manually.  

Caz3121

If you are finding it confusing to budget having three payments, do you have a bank account that you could use for this purpose only? eg transfer total of all payments to that account in one payment, have your direct debits come from that account.
Consolidation is rarely a good idea, firstly any application will assess the loan as additional borrowing to your current debts so you would need to have an income that supports double the debt (there is no guarantee you would use a new loan to pay off the existing debts)
Maybe read the responses you got on your thread from a few days ago https://forums.moneysavingexpert.com/discussion/6263697/consolidating-debts/p1

phillw

If they let you move the date the DD comes out then I found moving them all close to the start of the month makes it easier to deal with. Then I set monthly reminders on my phone to check that they go out and transfer money in to the account if there is not enough.

warby68

3 payments isn't a lot and these can be 'automatic' via direct debit and you've already asked the question on your other thread.
So is there really another problem here perhaps? - that you can't afford your payments or some of them are due the 'wrong' date of the month or spread through it,  or are you looking for cheaper interest rates. Does the £250 you can afford cover the contractual amounts on all 3?
If its a wider debt or budgetting issue this is the right place to ask for more help.
My general advice for you question would be to set aside the money as soon as you are paid for all that month's payments into another account and either transfer back when the payment is due or arrange for the payments to come from that account. If the money is physically earmarked there is less chance of you spending it or getting mixed up.

DCFC79

Katieann said:

Hi, I have two loans from two different banks and a credit card from Aqua. Is there a way to combine them all so I can just pay a one off payment each month. I get so confused with the current system of two direct debits and then having to make a payment to Aqua and would rather do a lump payment each month. Any advice would be great, thank you

So is the Aqua card set as a direct debit ?

If not then it should be.

Only way to do what your asking is to consolidate, problem you will face is the lender will see it as extra lending no matter your intentions.

macman

'just one payment a month' is the mantra that the consolidators always use. But that doesn't mean that you'll be paying less per month, and if you do, it's usually because the loan term has been extended. Don't be fooled: the only figure that matters is the total cost of the loan to term.