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Consolidation loan with bad credit
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I think if you ask anyone who has serious debt problems, £20k, £30k sometimes even £100k on unsecured debt they have been where you are now. At the very start of their debt problems considering a consolidation loan. It buys them time and wiggle room, they continue to spend more than they earn and their debt escalates, sometimes quickly and sometimes over a few years. Almost without exception they all say it was a mistake so don’t make a consolidation loan your first mistake.
You already have bad credit and admit you are not good with money. So get good with it. Do an soa and a spending diary as money maker and Arleen suggest. Yes it can be boring but if you don’t master this you are setting yourself up for a lifetime of struggling with debt. Sort it out now while your debt is relatively small and fixable. You have to stop spending on the cards and live within a budget as a start.I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
Click on this link for a Statement of Accounts that can be posted on the DebtFree Wannabe board: https://lemonfool.co.uk/financecalculators/soa.php
The 365 Day 1p Challenge 2025 #1 £667.95/£472.78
Save £12k in 2025 #1 £12000/£124500 -
The offer you have might be the best you can get so even though the apr is high its not a rip off.
This thread might be worth a read https://forums.moneysavingexpert.com/discussion/5567669
I knew by clicking on the above link it would direct me to MY situation!
To the OP, take a read of my situation. I wanted to consolidate and have lower monthly payments and basically, more money to play with but in reality you are just putting yourself in debt for a longer period.
It's up to you of course but trying to read within the lines, I think that you know what the sensible answer would be,
Good luck!Savings as of April 2023 Savings account - £26460.50(14474.88)Current account - £2140.24(4576.79)Total - £28600.74(19051.67) £1010 (£65pm CS/BS) £250 CS/BS/JS0 -
I really wouldn't bother putting money in a HTB ISA while you have debt. It will cost you far more to borrow that £200 a month (or whatever you put in) than it will earn being saved, especially when you won't see that money until you have a house deposit.
How do you budget at the moment? Do you use cards mostly, or cash?0
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