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Loan to get rid of credit card debt?

wasabi_project · 2023-05-17 13:32:36

I have recently been considering the option of taking out a loan of roughly £12k in order to pay off credit cards, but I am confused as to which would have the more negative impact on my credit score. I regularly make the payments on the credit cards but with my mortgage deal ending next year I was wondering if a loan…

Comments

sourcrates Posts: 32,234 Ambassador

18 May 2023 at 1:43PM

Consolidation loans have a terrible reputation for been repeated over and over again, as the protagonist fails to address the bad financial habits that found them in debt in the first place.

If that hurdle can be overcome, and you are more strict with yourself than a North Korean border guard, then it may work for you, if you keep revolving that line of credit, then it won`t.

Most serial consolidator's end up in some form of insolvency or bankruptcy, so make sure you make the right decision.

I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it 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.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
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