Consolidation loans

[nutcracker]

Baically i need one.

Have debts of about 7500 and need a consolidation loan of £8000 over 5 years to clear it all.

Problems, I am not a homeowner and don't have great credit history either.

Any ideas ???

the interest on those is appalling, try to avoid if you possibly can.

Try you bank, or other 'reputable' high street banks first - HSBC are quite 'friendly' towards people without fantastic credit histories.

alternitavely look to see which debts have teh highest interest rates, and pay 'more' on those to clear them quicker even if they're 'smaller' debts (while keeping up the minimum payments on the lower interest ones, as each 'high interest' debt gets cleared you can work you're way downwards - and eventurally clear the lot - and quite possibly quicker than you'd clear a csolidation loan)

Thanks.

The only debt that has interest on is the loan.

The other debts are rent, council tax and electric and Next.

Have already tried my bank and they said no, but also said it is a bad time to try as all the accounts get reviewed this month.

Will check out HSBC, thanks.

Would also suggest you contact the CAB and the CCCS (Consumer Credit Counselling Service) for more help re your creditors.

Taking out a consolidation loan is a very expensive way of borrowing money. You also end up with paying a great deal of interest on top of the original amount borrowed.

Would also agree with Queen of Quotes's advice.

Alvin Hall has written some great books re finances. Would suggest you read these too.

if your bank has turned you down then i think you'll have problems else we're

sorry mate

the only other alternative i can think is that you go to a debt mangement company.

Ok thanks all.

Can't believe we are in this mess again after we fought so hard to get out of it once before.

Have applied for a job today which would help sooooooooooo much, so keep it all crossed girls

These companies are not good as a rule: many have stonking fees too.

Speak to the poeple you owe money to, but prioritise your rent and then council tax / utilities.

Are you getting help with the council tax? if you're on a low income look into it.

There are plenty of good wbsites with debt advice, try a google search, the CAB have online advice sheets too

Fingers crossed for you getting a job. We were where you are a few years ago and ended up having to sell the house and move into rented (dh was ill and lost his job). Although it is hard now and sometimes we feel like King canute, things have improved.

Nutcracker. You don't need to be a homeownner to take out most loans. Consolidation loans is just a marketing ploy by loan companies (at the end of the day a loan is a loan, they are just tapping into why you might need the money). The banks tend to have the tightest credit restrictions on people applying for loans and are usually not the cheapest place to lend from - don't be put off by being refused by the bank. Most companies will require you to have a household income so you may find it easier to be accepted when you are working. Consolidation loans have their uses but remember you will end up paying more in the long run (interest) and can be dangerous if you continue to build up more debts. Hope you find the solution for you. Good Luck

Some advice that proved invaluable for me is to go see your c.a.b, you can then contact each creditor and ask for a settlement figure.
On my student overdraft of £2400 i got a settlement of £1000.
obviously no guarantees, but most companies will offer this to ensure that they get the money back from you without it dragging out and incurring more costs to themsleves.
Once you recieve these figures you can apply to a high risk lender for a lower amount, which you are more likely to get, and the astronomical fees they charge are nothing in comparison to the savings you make on settlements.
worth looking into, it got me out of a very tight bind.