Does anyone know of a company who will offer a consolidation loan when your on maternity leave?

[jellyjem]

I've tried confused.com but the only one they can offer me is with a company called Relax Finance and its nearly 12%. I need to consolidate our debts quickly as our mortgage holiday finished this month and I've realised we're not going to be able to manage financially unless I do something quickly. Hope someone can help.

Just to add, I'm due to go back to work in about 3 months time and we'll be a tiny bit better off financially then but we still won't be able to manage.

Must go and feed my little girl now but I'll be back later and would really appreciate any help/advice.

Jem

Have you tried your own bank?

Can you remortgage to consolidate, not ideal but as a last alternative, or a further advance, if the mortgage company know you are going abck to work they may be flexible.
I would get in touch with an IFA or mortgage broker and have a chat with them to see what options you have.
A personal loan maybe but then do not tell them you are maternity leave, they rarely ask for proof of income.

If you still won't be able to manage when you go back to work then taking on more debt now is risky.Maybe as big says speak to a financial advisor.

I would steer away from a consolidation loan. These are often much more expensive.

Work out which debt it the most expensive to service and work on paying that off first whilst keeping up minimum payments on others and then work through your debt.

Hi - we can't remortage as theres not enough collateral on the house to have enough to pay off our debts, we owe £20,000 on credit cards and bank loans.

I know consolidation loans are more expensive but I can't see another way round it as once we've paid minimum payments on everything I've worked out we'll only have about £70 a month left to buy food and clothes. Theres no way we'll be able to manage on that. If we consolidate it'll cost more in the end but will spread everything out over a longer period with smaller payments. As far as I can see it we don't really have another option

Jellyjem - call you creditors - it is painful and hideous and see if you can renegotiate your payments. You will not be the only person doing this at the moment.

I really urge you so keep away from a consolidation loan. It is so expensive.

And of course you will have reviewed your spending and how this debt has built up...

I agree with Clarice - try and get them to agree to reduced payments.

Thanks for the advice. I'll try ringing my creditors first then and see if I have any joy.

I know another loan is the last resort, it just feels like I'm scrambling around at the moment trying to sort this out and I have to do it quickly as we're not going to be able to manage on such limited funds for very long. I worked it all out before I went on maternity leave and thought we'd be okay but everythings gone up soooooo much its just not manageable anymore (sigh).... Wish me luck.

Jem

good luck jem - you are doing the right thing. And well done for facing up to it and getting it sorted now and not waiting until it has gone really wrong. Creditors much prefer you to call ahead and sort things out before it all goes wrong - this way they have more chance of getting their money back.

I agree too you won't be aqble to get a loan unless you have equity in your house.Good luck with ringing round Do it now as rates are probably going to rise soon according totodays news

Jellyjam there was some quite interesting points raised on Moneybox Live yesterday (radio 4, think the transcript is available somewhere on www.bbc.co.uk/moneybox about some lenders having to accept reduced payments if you physically cannot afford them. I think if you phone and offer to go through an income and expenditure sheet with them, and show that the situation isn't permanent (i.e. you will be able to increase payments fractionally when you go back to work - even if it's not much they will see you are making the effort) you might be able to negotiate something.

Good luck!