champagne
|
No.Thats basically just another loan. |
|
frasier
 |
They can be if your existing loans are high interest loans like credit and store cards.
Consolidation loans can be a lot cheaper way to repay your loans in terms of paying interest.
Just be careful you don't take out one of these loans then continue spending on the cards!!!...That way lays disaster!!!!!!!! |
|
Christy
 |
no. no. no. the problem is that while you're paying off the consolidation loan, your credit cards are ready to be used and so you evenutally do.
try to pay off the credit card that charges the highest interest first. |
|
xNIKKIx
 |
Id have to say from experience that no it will not help. The best way is to contact a charity based dept company and they will do a spenditure form with you to work out what you can afford to pay each month. They also notify your debters and using legislation can stop them from adding interest. It sounds complicated but believe me once its done its so much easier and less stressful. I'm with CCCS which is a charity so it does not charge you for the help they have been realy great with me and my partner. Good luck and hope that one day you have that debt free stressless life!!!! |
|
5yellowchips
|
only if there cheaper than the original loans. Try taking out a loan not sold as a consolidatsion loan. |
|
Vicky
|
Yes they are, i do this every day at work adn it makes a hige difference. If you are paying out different amounts every month on different items of credit (loans, credit cards etc) it is a great idea to take out a loan to pay them all off and just have one payment a month that 99.9% of the time will be cheaper than what you are collectivley paying for all your other debt.
If there is too much debt then a debt management programme can be equally as good.
Need any help then just email me. |
|
Citizen DeCat
 |
Not really. These are made to look attractive by offering lower payments, the catch being over a much longer period. You therefore end up paying a lot more than you otherwise would, and it can take years to clear.
The only way to go is to give up some of the luxuries of life, and try to pay off your existing debt as quickly as possible.
The key here is planning. Keep an accurate record of your income and outgoings, so you know exactly how much you have to play with. Bills and debts come first, everything else is secondary. |
|
MARTIN D
 |
Depends how mucg debt your in, how high your interest rates are on your outstanding debts and what rate your offered on a consolodation loan. www.surefirefinance.co.uk may be able to help if you want a secured loan. |
|
ddnc_dave
|
Sometimes. Depends on your situation. If you have a lot of high interest debt then you should combine it into one lower interest loan for sure. Post some details as to your problems and you might get more specific answers.
If you do need a loan though, here's a good loan site:
http://loan.divinfo.com/
Good luck! |
|
ebizoutlook
|
It all depends. I have included two articles in my resource box that might be helpful to your question. Good luck! |
|
yuygj2000
|
no! well only for like 3% of the population, yeh like they said^ its just another loan, so that includes the interest on that too! get some non-profit financial advice, ie registered charities and Not! BANKS! |
|
scifidiva
|
Generally, NOT. You cannot borrow your way out of debt. If you're consolidating a bunch of credit cards, then the ONLY way a consolidation loan will do you a speck of good is to cut up and NEVER renew those credit cards. What usually happens is that people keep the cards, then wind up using them again.. and then they are paying double.. the OLD debt in the consolidation loan, and the "new" debt on the credit cards. |
|
just Reese
 |
Consolidation loans is definitely a great start. Consolidation companies contact your credit card companies and make arrangements for repayment. For the future you may want to consult with a financial planner to set up something for your spending habits. |
|
twisted b
|
when i was deep in debt i used this page to compare different options available to me. worked like a charm! |
|
jac c
|
short term...maybe...long term..no!! you need to keep your balances below 40% of the limit and set aside whatever possible to pay off un-needed cards...and practice responsible spending when it comes to credit...ask yourself "do i really need this?". This should help when it comes to revolving credit. |
|
Mental Mickey
 |
No. If you've got this far to even consider a consolidation loan then you are obviously not living within your means and are spending more than you are earning. That is not good news, and a recipe for bankruptcy. If you're prepared to actually rip up all your credit and store cards and take a consolidation loan then it might work, but often you'll find sooner or later that you find a reason to need to go back to your cards again and that within a couple of years your monthly bills are even more than they were before - paying off your consolidation loan and your new credit card bills. Banks don't care, they'll keep lending you it without really checking that you can afford it.
Sit down with someone at the Citizens Advice Bureaux and work out exactly where you are at with your finances - what you earn and what you spend. You will probably be quite shocked and find that an Individual Voluntary Agreement (IVA) or even Bankruptcy might be the answer rather than getting another loan. |
|
NIGEL R
 |
NO you get further into debt, |
|
Debt Free!
|
nope. you need to learn to manage your own money. having someone do it for you doesn't solve the problem, which is most likely, you. |
|
Mon Bel Ami
|
The biggest factor is learning to live within your means. Make a budget for yourself and stick to it. Only use the credit cards for emergencies. |
|
Rozzy
|
This is one answer but will not necessarily help you long term and may even makes things worse.
The best way is to make a note of EVERY single thing you spend then cut back the inessential items or services.
Some people haven't got a clue how much they are spending each month or week and don't know where the money goes.
It's relatively simple: if you spend more than you earn, you will get into debt. If you live within your means, you'll generally be OK. However, always pay off your debts FIRST so you aren't paying any interest.
Interest is just like giving money away unnecessarily. Take back control of your own spending. |
|
| |
|
Homepage 
Financial
Forum 
Credit 
No Spam
Adult 
Gambling
Unfinished
Deception
Plagiarism
Not English
