Business & Finance

consolidation loans-Im in deep financial trouble

Im in deep financial difficulty at the moment. I was made redundant at the end of april and during the last couple of months have been careful with my money and saving it but now I've run out and still jobsearching. I pay £300 in monthly rent but have that covered until august.
Anyway, I have used up my bank overdraft and credit cards and I also have a loan I have to pay back each month at around £180 so I rang my bank Natwest to ask if there was anything that they could do to help and they have offered me a consolidation loan at around 20% interest.
I've no idea about these type of loans, which are the best ones? I really dont know what to do. Should I take the loan theyre offering me?

filthiestfis Tue 01/07/08 17:04

<< Previous

Next >>

Subscribe to question

Post an Answer

Important Notice
The information provided by The AnswerBank does not constitute financial, investment or tax advice. You are advised to discuss your specific requirements with an independent financial advisor prior to entering into any binding contracts. The AnswerBank terms and conditions of use apply.

Kathyan
Tue 01/07/08
17:08

Phone your local CAB office or ring Payplan (08009177823) or CCCS (08001381111). They all offer free advice and can help you to sort out your money problems. Good luck!

raysparx1
Tue 01/07/08
17:10

Hi filthie, sorry to hear you are in a bit of crap, I think if I were you I would go and talk to citizens advice, they will put you in contact with an advisor who wil be able to talk to all the people you ow money to, they will probably be able to get the interest frozen and negotiate an amount you can pay off over aperiod of time, but do it NOW, don't laeve it untill it spirals out of control.

Don't take out the first loan the bank is offering you, but please do talk to somebody, good luck, hope you get sorted, Ray

filthiestfis
Tue 01/07/08
20:13

Question Author

Thank you Ray and Kathyan. It is an urgent matter so tomorrow I will ring CAB. What is Payplan and CCCS?

Kathyan
Tue 01/07/08
20:29

They are debt advisors, but their advice is free. They will explain your options and advise the best option for you.

NiceCupOfTea
Wed 02/07/08
03:10

I approached the HSBC with an offer for repayments, which they refused initially, for a loan I had with them which I couldn't afford the repayments on for six months due to maternity pay. The CAB were brilliant with their advice. I ended up getting a repayment loan with the HSBC that I could afford, which then allowed me to up my repayments when I was better off. Just check your credit ratings while the negotiations are going on.

NiceCupOfTea
Wed 02/07/08
03:14

And just before the misogynists get on their high horse, this sort of stuff is available even to blokes who suddenly find themselves unable to earn their normal wages.

Twenty20
Wed 02/07/08
10:40

Taking out a loan to pay off other loans is rarely a good idea and I'm a bit surprised that, given the current mess that banks have got themselves into, that they would even suggest this.

Make them an offer to pay off the loans at a lower monthly payment as NiceCupOfTea says.

Post an Answer

Submit the above question and answers

add to del.icio.us	add to digg	add to furl
add to reddit	add to Technorati	add to Blinklist
add to StumbleUpon	add to squidoo	add to ma.gnolia
add to Cocomment	add to Netscape	add to Fark