Consolidating debts?

I am considering the idea of consolidating some debts with Ocean Finance or First plus. Has anyone ever taken out a consolidation loan with any of these companies?. I am considering it as I have too many outgoings coming out from my wages. By doing this, I will be able to sort my finances out.

Yes you are cosolidating your debts, yes the payment may be lower, but you will definately owe more, pay back more and put your home at risk if you get into trouble. Please think seriously before you do this, better to talk to cab or cccs and look for better options.

Good luck

Wait, i am answering!

the answer is never to borrow more money
consult a debt management company like payplan
they can reduce your outgoings even lesser than the repayment you will be paying on your loan
you can even pay ALL your creditors 拢100 a month only

but talk to them first its not for everyone
it may affect your credit

I have heard some bad things about first plus - how people actually ended up owing more than they borrowed. If things are really tight, look up the CCCS (www.cccs.co.uk). They will negotiate with your creditors lower payments. Of course it will affect your credit rating but consolidation isn't always the answer either. Look at all the options first, and good luck x

Beware you have debts and you now want to get another company involved. Their staff need paying and their very expensive TV adverts want paying and their expensive office space needs to be paid who is going to pay for those. Well you are if you sign up with them. So you're adding more debt. there are debt councillors who will help you at no cost to you. Go and see citizens advice and ask.

i know somebody who has done it and the advice is only do it as a last resort .
he had his mortgage to pay off along with lots of other debts and a year down the line the repayments are crippling him and he stands to loose his house if he is not very very careful
at the end of the day he is no better off if anything worse
this is all what he has told me and there is no way he would do it again
hope this helps

the main banks would be my first option, cheaper rates... though i guess youve exhausted that route

Don't get any types of those consolidation debt companies. They get you more into debt. Your best bet is to just pay off as much debt as you can and then concentrate on your savings. It may take some time but it's better in the long run.

the bottom line is it a non-profit organization the is going to negotiate your debt and handle the payments to the varius debts and yuo make one payment.... or are you lumping all your bills into one payment. (at a drastically lower interest rate)

the problem with debt consolidations are people that manage debt poorly (everyone that needs a consolidation fits this category) is they fill there remaining financial budget with more debt, eliminating the breathing room they created.

where i completely agree with conslidating debts is where you eliminate all borrowing further period, transfer balances to zero percent interest accounts or 1.9% interest... and send every stinking penny you have to pay the debt off as quick as possible, saving only a emergency fund of $1,000-$2,000 as a standby for (emergency only) not that new pair of shoes that would look awesome with a new dress.

only buy needs, and even at that essential needs, like groceries, cleaning supplies, medicine, gas for commuting... reset your thermostats, and pinch pennies like a crazed possessed demon..... it has taken me seven years to do this but I am now in the market for my very first home and so excited...my credit is excellent and i now have freedom from debt....good luck on your journey....

It depends on the APR of the loan. If when you calcularte it you are getting better value for money then do it, if not don't. I've been told before that when applying for a loan the only place that will give you the best interest is your current bank. Not sure if that is totally true or not but i couldn't find a cheaper loan when i was looking.

STAY AWAY from these so called consolidation company's.
We consolidated all our loans and was paying back 拢270 per month. After 5 years of paying this we asked the company how much would we have to pay back to finish the loan early. The balance was MORE than we originally took out! I was gutted we had paid all that money for nothing. The
make everything look so easy but stay away it's a complete farce.

consolidating debts don't solve the problem. you are only moving it around and renaming it. you still have the debt and owe the money.

the answer is to get on a plan and pay the debt off and be done with borrowing.

follow the baby steps.

Whatever you do - DO NOT borrow more money to try to get out of the debt situation, all you will do is get deeper in debt.

If you are in a mess then write to all the people you own money too and offer them lower payments and tell them why.

Always give priority to those that put a roof over your head, rent/mortgage, electricity and gas, rates etc. These are the most important.

When you have all the answers sort them by those that charge you the most interest. The one that charge the most are those nyou ut at the top of the list. Interest free ones go at the bottom.

Pay everyone a little bit and try to pay more when you can.

If you need help go to the CAB or email me and I will tell you more

Instead of consolidating your debts, talk to your existing lenders and try and negotiate lower payments. I know someone who was struggling financially. They had the debt stopped so that interest would not continue to accumulate and they have to pay a minimum amount off based on their income and other expenditure....including all their other debts. It has affected their credit rating, yes, just like it would be if consolidating, but at least they are not paying back tonnes of interest!

Look for debt counselling help in the voluntary sector - CAB Credit Union, CDFI first.

You can fiond some on-line budget exercise sheets if you get the right search criteria.]

Check the OFT and FSA websites - they often have useful material