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Debt Consolidation
- Thread starter blueboy84
- Start date
Wheelsy
Well-Known Member
Definitely do it. And cut up those credit cards.
Ronnie the Rep
Well-Known Member
be careful. it depends on how far in the shit you are. if it is credit cards etc then they are unsecured and the companies would have to take you to court to get their money. sometimes you can do a dela with your creditors for a smaller amount (talk to citizens advice) but this would screw your credit rating. consolidation can be a great way out but is normally a secured loan on your property which means you could lose your home if you default
1894
Well-Known Member
Personally, I'd avoid it like the plague !
If compounded long term, the interest paid back could be several times the amount borrowed - and I mean several times.
Witnessed a huge amount of debt consolidation during my working career, and most of it was done because of unmanageable debt.
Grin and bear the short-term pain until it's paid off, rather than consolidate, I'd say.
Here's a link to an online Loan Calculator which may be helpful.
<a class="postlink" href="http://www.moneymadeclear.fsa.gov.uk/tools.aspx?Tool=loan_calculator" onclick="window.open(this.href);return false;" target="_blank">http://www.moneymadeclear.fsa.gov.uk/to ... calculator</a>
If compounded long term, the interest paid back could be several times the amount borrowed - and I mean several times.
Witnessed a huge amount of debt consolidation during my working career, and most of it was done because of unmanageable debt.
Grin and bear the short-term pain until it's paid off, rather than consolidate, I'd say.
Here's a link to an online Loan Calculator which may be helpful.
<a class="postlink" href="http://www.moneymadeclear.fsa.gov.uk/tools.aspx?Tool=loan_calculator" onclick="window.open(this.href);return false;" target="_blank">http://www.moneymadeclear.fsa.gov.uk/to ... calculator</a>
well i spoke to them this morning and they said it works like a loan
but it is not.They freeze all interest on my debts and they have worked
out a fee which is managable with my incomes and outgoings. I think it
sounds ok the only bad thing i can see is it will affect my credit rating
for the next two years.
but it is not.They freeze all interest on my debts and they have worked
out a fee which is managable with my incomes and outgoings. I think it
sounds ok the only bad thing i can see is it will affect my credit rating
for the next two years.
Ronnie the Rep said:be careful. it depends on how far in the shit you are. if it is credit cards etc then they are unsecured and the companies would have to take you to court to get their money. sometimes you can do a dela with your creditors for a smaller amount (talk to citizens advice) but this would screw your credit rating. consolidation can be a great way out but is normally a secured loan on your property which means you could lose your home if you default
Eh, what about an unsecured personal loan to clear all the cards??????
stonerblue
Well-Known Member
transfer all cc's to one that is 0% interest for as long as you can. Then when the time is up, transfer to another zero interest card.
Nobody should be paying interest on credit cards.
Nobody should be paying interest on credit cards.
blueboy84 said:well i spoke to them this morning and they said it works like a loan
but it is not.They freeze all interest on my debts and they have worked
out a fee which is managable with my incomes and outgoings. I think it
sounds ok the only bad thing i can see is it will affect my credit rating
for the next two years.
They freeze all interest on your accounts...you can do this yourself mate. Sit down with all your incomings at the moment, advise all your credit companies that you are going through financial difficulty and you need all interest and charges freezing in order to clear off your debts (I have a template letter for this if needed). Then offer them a certain amount (as much as you can) along with a full financial statement. These companies are good for about 5% of the population in my opinion, and they charge you for something you can do yourself. Obviously all depends on how much you owe. Any probs just drop me an email, deal with these types of things all day everyday at work.