babycrazy1706
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How does this work, do they charge and has anyone have experience of using a dc service? Do you end up paying out more per month? Thanks. Xx
debt consolidation
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kit10grl
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I did this through my bankf to consolidate a credit card and overdraft from them. They gave me a debt consolidation loan. It had very low interest rate. I had been trying to pay off the overdraft for ges but each month the money I would set aside for it always ended up getting taken back out for something else that came up. This way the payment is made and I cant get the money back so cant keep getting myself into more debt.
The monthly payment also works out at much less than I was paying out to the credit card each month alone so it is actually saving me money each month as I am no longer running up two sets of charges and two sets of interest. It worked out really well for us. The only downside is the timescale which was over 7 years but if I am being completely honest with myself I probably wouldn't have paid them both of myself in that time. This way means each month I have to make the payment so will eventually be cleared from the debt.
I recommend it but be careful to check ALL the terms to ensure you are getting a good deal
The monthly payment also works out at much less than I was paying out to the credit card each month alone so it is actually saving me money each month as I am no longer running up two sets of charges and two sets of interest. It worked out really well for us. The only downside is the timescale which was over 7 years but if I am being completely honest with myself I probably wouldn't have paid them both of myself in that time. This way means each month I have to make the payment so will eventually be cleared from the debt.
I recommend it but be careful to check ALL the terms to ensure you are getting a good deal
babycrazy1706
Mummy to Elijah and TTC
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Thanks for replying hun. Xx
Abz1982
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ive been trying to sort something like this out, but neither of the banks im with will give me one as they say with my other lending they do not see repayments being met.........despite me saying its to consolidate those. 
. Ive given up
. Ive given upI would go to the cab and they will point you in the right direction for debt advice which will cost you nothing and be impartial
Consolidation loans on the whole are not a good idea, borrowing more money to pay debts that are too high is never sensible. All you are doing is getting into more debt
Consolidation loans on the whole are not a good idea, borrowing more money to pay debts that are too high is never sensible. All you are doing is getting into more debt
babycrazy1706
Mummy to Elijah and TTC
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Well... Its not for me its for my sons father. He has credit card debts of which he pays £100 a month off and a loan which he pays £295 off a month. So that £400 of his take home of £1100 a month going just on debts. I wondered if he could take out a plan where they join the debts together and he pays less than what he already pays each month. I don't even know if there is such a thing?? He can't afford to give me much for my son so I want to find a solution. Xx
A debt management plan is better than consolidation, I would be telling him to go get some proper advice though
If he takes a loan to pay off the existing debts all he is doing is extending the term so it will cost more in the long run. Also there is the risk of running up the card to again.
If he takes a loan to pay off the existing debts all he is doing is extending the term so it will cost more in the long run. Also there is the risk of running up the card to again.
Srrme
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Do you mean like a program that pays your debt? We're about to sign up for one that'll cut our debt in half.
Do you mind me asking which program you're signing up for?
x__amour
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Do you mean like a program that pays your debt? We're about to sign up for one that'll cut our debt in half.
Do you mind me asking which program you're signing up for?
Freedom Debt Relief. You can PM me if you have any questions.
hayz_baby
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There are some variations and it depends on your individual circumstances. If u have debt u can't pay then a debt management plan may be best. If ur looking to save money on your debt and/or pay it off quicker, have even meeting minimum payments as a good c history then consolidating Can b very beneficial. If for eg u have 2/3 cc where u pay the minimum every month and and od then a loan will have a much cheaper interest rate and gives u a date as to when it will be paid off and can work out to be a shorter length of time then if u were to carry on as u r or go on a debt management plan. Plus if u have a good credit history a debt management plan may affect it. I have seen it work successfully for people but like I said it's what is individual to you so without knowing all the circumstances then I can't say for sure. Also it depends how much u have.. Most loans don't give you decent rates till u hit around the 5-7000 mark.get some advice and do your research x
Yes and no to the above.
You ARE increasing the amount in most cases and the length of the loan, so you pay back more.
If you borrow for example £5k, say you repay £7k in total, but if you consolidate that with other debts you then have to borrow £7k, and pay back say £9k, just on that one loan. So an original loand of 5k, by that time it is consolidated can cost £9k
You have to borrow the original amount, plus the costs and interest, then costs and interest are added on to loan 2, so you will always need to borrow more than the original loan. The reduced payment comes in because yes the rate may be lower, but the term will be longer and the amount of debt will always be higher than it was pre consolidation
You ARE increasing the amount in most cases and the length of the loan, so you pay back more.
If you borrow for example £5k, say you repay £7k in total, but if you consolidate that with other debts you then have to borrow £7k, and pay back say £9k, just on that one loan. So an original loand of 5k, by that time it is consolidated can cost £9k
You have to borrow the original amount, plus the costs and interest, then costs and interest are added on to loan 2, so you will always need to borrow more than the original loan. The reduced payment comes in because yes the rate may be lower, but the term will be longer and the amount of debt will always be higher than it was pre consolidation
