Consolidate debts

leigh1
leigh1 Posts: 1 Newbie
in Loans
HI,

I have 3 credit cards & a budget account totalling £12K in debt.

I want to place them all on a loan or something to make it more affordable as I keep switching the debts to new credit cards with 0% interest & pay them off like this.

Is there a low interest rate credit card out there with a high limit or a loan?

Other problem is my husband is self employed & would they require his accounts as he does not have them as he is a sole trader?

Comments

  • margaretclare
    margaretclare Posts: 10,789 Forumite
    Not a good idea. There are many pitfalls with so-called 'consolidation' loans, the main one being that it lulls you into a false sense of security - all those ads about easy affordable lower payments - and you have not paid off the debts at all, only shifted them to somewhere that you may be paying more interest over a longer period of time. There's also the temptation to spend on those cards, and you haven't solved the problem at all.

    Aunty Margaret
    [FONT=Times New Roman, serif]Æ[/FONT]r ic wisdom funde, [FONT=Times New Roman, serif]æ[/FONT]r wear[FONT=Times New Roman, serif]ð[/FONT] ic eald.
    Before I found wisdom, I became old.
  • Robert_Sterling_3
    Robert_Sterling_3 Posts: 7,112 Forumite
    margaretclare wrote:
    you may be paying more interest over a longer period of time. Aunty Margaret

    You may be paying more interest in total.
    This might be due to you paying less interest per year over a longer period.
    It might even be from paying at a lower rate of interest than at present but over a much longer period.
    ...............................I have put my clock back....... Kcolc ym
  • Avogirly
    Avogirly Posts: 751 Forumite
    First Anniversary
    I consolidated my debts into one payment, but I did it through the bank. Because I was a graduate I got a good rate. My only advice for you is that you should not take the PPI associated with the loan, this really does increase the amount. I did take PPI, but wanted too because I have a hazardous job and hobby and therefore could not really do without the insurance should anything happen.
    October make £10/day currently £11.02
  • monkeysnail
    monkeysnail Posts: 66 Forumite
    If you own your house, tell the lender it's for home improvement to get the highest score possible for that question. If not, tell them for a new car. If you tell them it's for consolidation, you get a very low point and higher interest rate.

    THis is so that if ever you default, they have something to come after unlike consolidation of loans

    Check https://www.creditsecrets.co.uk

    It helped me.
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