Debt Consolidation

Are there any further options for debt consolidation if the banks have rejected your loan applications? They seem quite happy to keep taking the money at 40% on an overdraft and various credit cards but don’t want to transfer it over to an interest free or a low interest loan? I have never missed a payment but my credit score is low. I guess due to the amount of unsecured debt that I’m using but it is frustrating that they won’t let you consolidate the amount even if it means closing the accounts with high interest. Especially as the estimated monthly payments are a significant saving over what I’m paying now. 

I have cut back my expenses to a bare minimum but with just £100 a month left over it is going to take decades to clear this level of debt at these high interest rates. Suggestions very much appreciated. Thanks. 


  • RobM99RobM99 Forumite
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    Speak to your creditors, see if they'll freeze interest?
    Now a gainfully employed bassist.
  • BrieBrie Forumite
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    Yes it seems completely logical doesn't it.  But the problem is that you have £X and by taking out a loan to pay that you actually end up with 2 x £X.  So if your overdraft and credit cards etc are at £10k you'll be wanting a loan will mean you have a debt of £20k.  I know and you know that you'll use the loan to clear the overdraft and cards but the bank isn't so sure.  So they say no.

    The thing to do is to provide a statement of accounts and let people help find you ways to cut back if possible.

    "Never retract, never explain, never apologise; get things done and let them howl.”

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  • fatbellyfatbelly Forumite
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    You may be looking at a debt management plan. Post a statement of affairs and we'll look at it
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