Consolidation

SJH88

Hi All

I’ve got a good credit rating on the face of it, never missed a payment etc. have a few credit cards but only really have a balance on 1 which is around £3500

I had a long term loan with my bank which was annoyingly high interest so in the last year I took out 2 separate loans at a better rate to clear this and lower the monthly payments.

the total loan amounts now are about 28k however both are still 19%

My overall debt has decreased quite a bit the last couple of years since I’ve taken a conscious effort to get it down and be eventually debt free

I have 2 vehicle payments on my credit file, although one is paid through my business

The issue I have atm is that I can’t even get a balance transfer credit card to stop paying interest on my balance

also I’d really love to be able to consolidate all of this into 1 monthly payment with a loan, at a decent rate for 4/5 years and finally be on the road to being debt free. I have access to loans but they’re higher than 19%. Is it worth actually calling up a bank and speaking to a human to look at my situation as I just keep being told I’m unlikely to be given a consolidation loan which I understand as it looks like a high level of debt

sorry for long winded message, I make the payments comfortably on everything tbh but the more I’m learning the more the interest I’m paying sticks in my throat

edited to add:

I’ve read through the forum and know what people will say regarding spending habits etc but for context this was originally a 50k debt for home improvements, so that debt has been reduced by a considerable amount. I’ve done overpayments and will continue to do so. My behaviours and spending habits have changed dramatically and I’ve became tighter with money. Just wanted to add that in. I just hate the thought of pay towards this and paying much more interest than I need to, however both these loans will not run for the duration due to overpayment so happy to just suck it up if need be

Isthisforreal99

Who has given you this 'good credit rating'? If a credit reference agency then you can safely ignore. The fact you can't get a 0% balance transfer card would suggest lenders don't see you as 'good'. Which would also suggest your chances of a decent loan APR isn't good.

By all means have a look at the loan eligibility calculator but I think paying down your existing debt as quickly as possible is your best bet.

Grumpelstiltskin

also I’d really love to be able to consolidate all of this into 1 monthly payment with a loan, at a decent rate for 4/5 years and finally be on the road to being debt free. I have access to loans but they’re higher than 19%. Is it worth actually calling up a bank and speaking to a human to look at my situation as I just keep being told I’m unlikely to be given a consolidation loan which I understand as it looks like a high level of debt

This

These days the loans are not decided by human beings, the person you would speak to will be restricted by what their computer screens show them, they can't make a decision.

Have you checked all your credit reports incase something is wrong on one of them?

It would help if you can afford to pay above the minimum payment each month, can you squeeze your budget to do this?

ManyWays

What matters is the interest rate. Just having to make one payment a month is not worth paying more for, or paying a similar rate over a longer term. Realistically no one is likely to give you a single loan covering both large loans and the card.

If your overall debt has been dropping, your efforts now need to be directed towards clearing the card. Get that cleared and pay a year more on the loans and then look to see if you could refinance one loan at a much lower rate and similar remaining term is my suggestion. Do that and then in a few more months you may be able to refinance the second loan much lower as well.

MEM62

Consolidation loans rarely work and are not recommended. For one thing you are not clearing debt, you are just moving it. Secondly, the sense of financial relief the lower payments affords encourages further spending / debt.

If you are unable to secure an interest-free balance card then you'll need an old-school approach to clearing it. Tighten your budget (properly tighten your budget!) and throw everything spare at the debt to clear it faster. Or, if you are struggling with payments already, look at a DMP. The DFW boards will be able to offer a lot of advice and support.

Sncjw

Consolidation loans dont work. You have done it in the past in a way to get two loans to clear a single loan. The reason why you are seeing higher interest than 19 percent is because the loan provider is assessing you being able to pay your current debt plus the loan you want. I know you are saying you will use the money to pay the other loans off but there is no garuntee of that and the lender wants to migate the risk. There has been cases where people do not use the money to clear the debt and just end up in a worse situation. The lender will be assessing you to see if you can afford these payments against your income.