Debt consolidation

Salmo58

I’d like to consolidate my credit debts into one easy payment, I can’t find a bank to take me on, the loan repayments are all less than I’m paying out now to just stand still with the credit card companies. Who can I get a reputable consolidation loan from?

fatbelly

The problem is that if you have 20k of debts and want a loan of 20k, the lender will view that as 40k in debt, which may exceed their guidelines.

Are you sure this is the way to go? Are you struggling to make the monthly payments? If not, you may be better looking at 0% BT offers which kills interest for a specific time for a small fee.

If you are struggling, then debt-free wannabe is the place for you

Nasqueron

https://forums.moneysavingexpert.com/discussion/6664239/debt-consolidation

Lenders understand that people do not change their ways - e.g. you pay off the CC and then run it up again as you have credit, hence as per fatbelly comment above, they have to work out if you can afford to repay the debt + loan combined, not replacing. Similarly you can spend the loan on anything, they cannot force you to pay off the cards and cut them up.

That is why you get the crazy APR offers as you only get lenders who are willing to gamble on bad credit customers and cover themselves with high interest as they expect some customers to default

Go to this forum: https://forums.moneysavingexpert.com/categories/debt-free-wannabe

They will help with solving your debt repayment issues in a non-judgemental way provided you are honest with yourself and them when you do the statement of affairs

One thing I would recommend is speaking to each bank and cite financial hardship and get them to freeze the interest for a period so you can clear the balance, they should be offering persistent debt help already

MEM62

@Salmo58 It is also the case that you cannot borrow your way out of debt - no matter how attractive that idea might appear. Get over the the DFW board and those guys will offer some great guidance on dealing with your situation.