Debt Consolidation

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  • I am not a fan of consolidation loans as they usually lead to higher debt and I am also not convinced that someone else taking on borrowing for you is a good plan either even if it is your mum. If you cannot pay the £538 for whatever reason (that is a lot to find when you are only on benefits) can she pay it and will that impact on your relationship?

    At the moment you are not able to work and won't be in a position to buy a home for some time as you will need a deposit so I would recommend a DMP or IVA.

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  • In the end I took the loan. I've now paid that towards both cards. The one card Aqua has already been shut and the other I have requested for it to be shut but it will take 10 days. Both cards have been shredded and no longer exist. I have no need for them or reason to keep them. I have agreed with my mother to pay £600 per month. The extra 42 she will save and pay off the loan early towards the end of the agreement. I will have some money spare each month in my budget, which I will also save up to and used towards repaying the loan early.

    Thank you all for the good replies and advice. I really have learnt my lesson about how debt can get out of control. I hadn't actually spent anything on the cards for a long time, but the debts were hardly moving because of the high Apr and my limited income meant that they would've taken something like 6 years to repay.

    Now that I have no credit card, mobile phone contract or any other form of credit in my name. What's the best way to keep my credit file ticking over so to speak? Would a 2 year gap really make that much of a difference?
  • That's really kid of your mum. Good idea to overpay her to bring term down further....

    From my understanding, it's good to have credit in your name, as long as you're clearing it every month
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  • DCFC79
    DCFC79 Posts: 40,598
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    Get a credit card and just use it every month, doesnt have to be much, even if its petrol or if she doesnt drive then a food shop for your mum and she then pays your back.
  • DCFC79 wrote: »
    Get a credit card and just use it every month, doesnt have to be much, even if its petrol or if she doesnt drive then a food shop for your mum and she then pays your back.

    This ONLY works while a) you trust yourself not to use it for the wrong things and b) you pay it off IN FULL every month, as said. If either of those two things become a problem - get it cleared and get it gone immediately!
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