Advice needed about debt consolidation loans

Good afternoon , this is my first post so I’m pretty new to all of this , I am after some structure advice . Basically I have gathered quite a large amount of debt falling into the pay day loans and credit cards . My total debt is around £12,000 , £5000 of which is credit card which I have agreed with my bank to pay low interest and £100 pound back each month . As my credit rating is very poor , 1. Will I get accepted for a consolidation loan and is it worth it and 2. Any ideas of who to go with ? I am at the stage now we’re I can Not afford the monthly payment of all of them so this seems the only option . I own my own house and plan on selling my property next year and will use the profits to clear all my debt so will only need this loan for around 1 year . However will getting a consolidation loan affect me selling my property? All advice and feedback is greatly appreciated

Comments

  • It's doubtful you will get a consolidation loan due to having payday loans.

    Have you considered contacting step change to discuss a debt management plan or IVA?
    Mortgage started 2020, aiming to clear it in 2026.
  • I have not contacted them yet I’m not too sure what step change is ? And if I got a IVA would that not thing my chances in the future of selling or buying a property ? Like I said it’s literally just for a year I’m due to make around £35000 profit from my home so can pay it off it’s just the situation I’m in now due to all the pay day loans and credit card
  • DCFC79
    DCFC79 Posts: 40,598 Forumite
    Name Dropper First Anniversary First Post
    I have not contacted them yet I’m not too sure what step change is ? And if I got a IVA would that not thing my chances in the future of selling or buying a property ? Like I said it’s literally just for a year I’m due to make around £35000 profit from my home so can pay it off it’s just the situation I’m in now due to all the pay day loans and credit card

    Have you had a look at what or who stepchange are ?

    An IVA wouldnt affect selling a property (at least I don't think so), you could google for an answer.
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