Consolidation

lelb72

I'll make this as short as possible.

Was in debt for £4000 which was paid by family. Now in the same boat again, 3 credit cards and a loan totalling around £7000. Any advice as to consolidating all debts into one monthly payment would be great help? I can only afford around £100/£125 per month. ANy advice or help would be appreciated. Thank you

lelb72

A few years ago I got myself into debt of around £4000. Luckily I was helped by family that time after treating myself to some really silly things I did not need or want. I also used my credit cards and overdraft to go on holidays etc.

Skip to a few years later and I am in the same boat again, only this time it's £5000. Mainly using the 3 credit cards I have to buy food and buy new clothes and presents for birthdays etc. ANd a loan through work of almost £2000

I need to know if I can consolidate all my debts into one and pay a monthly fee of around £100 as that is all I can afford right now. Is there any way that is a possibility as this is causing me real stress and anxiety. I do work full time but it just seems I am in a spiral paying off the minimum cost for each which is well over what I can afford.

I really need some advice as I want to put my mind at ease knowing my debts are paid off and I can be a little more freer

MorningcoffeeIV

Consolidation doesn't pay off your debts. It just shifts it around and keeps the problem going for longer.

Borrowing money isn't in your skill set, so you need to address the underlying issues.

Prepare a SOA and let the people here help guide to towards a more effective solution.

Grumpy_chap

Duplicate thread

https://forums.moneysavingexpert.com/discussion/6669955/help

fatbelly

I'll answer as briefly as possible. Consolidation isn't going to help.

If you can, balance transfer the card debts to 0%. If your credit history does not allow that, or if you cannot afford the contractual monthly payments on your debts (and I doubt £100 is going to be enough) then you have a debt problem and we will need a statement of affairs.

fatbelly

Are you posting multiple threads on the same topic?

I will ask for them to be consolidated (!)

CliveOfIndia

As others have said, an SOA needs to be your first step.

Further borrowing is not the answer - you've already proved to yourself that it doesn't work. You need to take a proper look at your finances and make sure you can live within your means.

Even if you did want to consolidate (which is not a good idea anyway!), the odds are that you'd struggle to find an offer at a reasonable rate - if at all. Simply because a lender can't force you to use the new loan to repay your existing debts. They have to assume that the new loan would be in addition to - not instead of - your existing debt, and will factor that into their affordability calculations.

MEM62

Debt consolidation rarely works. The temporary emotional relief creates a tendency to dig a deeper hole. Having you debts paid off by someone else doesn't work either as you do not learn the lessons offered by taking responsibility for your own debts.

Post up an SoA you will receive some really good feedback from the regular contributors here.