How to put all deb on one ?

f4n4tyk

Hello, for several days I have been looking for a solution to combine all my debits into one. I have been paying off 2 credit cards + 2 loans for 6 months and have had no delays. I have previously repaid 2 loans on time without any debt, I have never had a late penalty and I cannot find loan debit consolidation anywhere. To put them all in one.

I have a credit card repayment in Barcleys + Lloyds + loan in Lloyds

the sum of my overdraft is 14,500 gbp, but the problem is that there are too many places, I would like to have it in one place, one payment. is it possible ?

Emmia

Consolidation is normally not advised as there is a risk that you start spending on the cards again, if you don't tackle the cause of the debt - and quickly end up with twice the debt. 

Have you done a Statement Of Affairs to see if there are other ways to tackle the debt?

https://www.lemonfool.co.uk/financecalculators/soa.php

Fill it in, format for MSE and post it up. I'd also look at the threads on the debt free boards.

CliveOfIndia

As above, consolidation is almost never a good idea.

Apart from the potential of running up more debt, affordability comes into play.  If you take out a new loan, the lender has no way of forcing you to use it to pay off your existing debt.  They must therefore take the view that the loan will be in addition to - not instead of - your existing debt.  For that reason alone, you're going to find it hard to get a loan at anything approaching a sensible rate of interest - if at all.

If you're managing to service the debts at the moment then just carry on as you are.  There's no problem with having debts in multiple places - just set up direct debits to pay them all and job done.  It's not like you're having to go into multiple bank branches every month to write a cheque in person.

If, however, you're struggling to meet your obligations, then the first step is an SOA, as noted by the previous poster.

f4n4tyk said:

the sum of my overdraft is 14,500 gbp,

Hopefully you mean the sum of your debts, not an overdraft?  If you've got an overdraft of that size then you really need to take stock of things!

Jami74

f4n4tyk said:

 I would like to have it in one place, one payment. is it possible ?

If you open another current account, you could have all your debit payments come out of it each month and once a month just put the total needed in. For example, if all your debits come to £1000, once a month you put £1000 into that account and all the debits will go out by direct debit or standing order. 

Nasqueron

Jami74 said:

f4n4tyk said:

 I would like to have it in one place, one payment. is it possible ?

If you open another current account, you could have all your debit payments come out of it each month and once a month just put the total needed in. For example, if all your debits come to £1000, once a month you put £1000 into that account and all the debits will go out by direct debit or standing order. 

OP is talking about consolidation loans i.e. borrow an even bigger sum to pay off debt and keep it in one place, inevitably paying more over a longer time 

macman

To state the obvious, replacing 4 smaller debts with one larger one does not reduce the amount owed by a single penny. Most likely, the repayment period will be extended and you will pay much more interest over the full term, even though the monthly repayment might reduce.

ManyWays

get a new bank account, pay all your debts from there and make one payment to that bank account each month - simple for you.

It won't reduce your payments... if that's what you want, talk to StepChange about a debt management plan. One affordable payment a month and new interest stopped on the cards. 

Grumpelstiltskin

OP Has been advised to claim Pension Credit on his other thread to help his financial position.

Lost all - will start with DRO - if that help ? — MoneySavingExpert Forum