Advice on debt consolidation loan please...

Kit82

I have a loan of £10,900 and a credit card of £1200. I tried to get my payments reduced or a loan to combine the two but I was refused credit.

A company I spoke to today will freeze the interest on my loan and credit card, and pay them for me. I'll pay them £200 a month (what my current loan payment is a month) and out of that they take £30 for their fees.

This appeals to me because I am going back to university in September and I can reduce or increase payments as I like with this company.

But I wanted to get some people#s advice, you can probably guess I am rubbish with money, and I don't really like the thought of paying this company £30 a month just to pay my bills for me...But I don't know what else to do.

lindens

NO no no no NOOOOOOOOOOOOOOOOOO!

There is no need to pay a fee to a company, when there are charities out there who will do it for free, and then all your money will go on your debts.
Look at the top of the page "Newbies start here" or something, it lists all the debt charities that you can use.

Kit82

I don't mean to seem dumb but I can't seem to find the Newbie section...?!

lindens

sorry i called it the wrong thing
got to the top of this page and it says START HERE > THE DEBT FREE WANNABEE RESOURCE BAR.
you can see lots of headings, read as many as are relevent but there is one specifically called NON PROFIT DEBT COUNSELLORS which lists the charities who can help you.

MrsTinks

I think what they are trying to get you into is an IVA? If you have not missed any payments this far are you aware of the affects of this on your future credit rating?