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  #1  
Old 05-14-2006, 10:01 AM
Janine Janine is offline
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Default Consolidating loans?

Any recommendations on how to consolidate loans most effectively? We have three at present, one with the Halifax, one with the Woolwich, and one with Norwich Union. I'm considerating taking out a new loan to pay off the others and at a better repayment rate (more affordable!) but has anyone got any tips on what I should look out for such as fees and good companies to work with? I think this is a great forum and thanks for your helpful comments already!
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Old 05-17-2006, 04:34 PM
corty corty is offline
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Default Re: Consolidating loans?

Hi Janine,

To start I'd definately do some research using a tool such as moneysupermarket.com... there are others too so make use of them to compare loans.

We were in a similar situation recently with loans and credit to clear of approx £25K. We had to find a way to sort out our repayments without them getting much bigger payment wise and giving us a bit of breathing room.

In the end we plumped for taking a flexible mortgage rather than a loan. In the long run we'd pay far more interest if we were to pay it over the 22yrs but with taking the flexible mortgage we can pay off the excess when we hvae a bit of spare cash that will over time help to reduce the mortgage and interest payments.

ALthough this option was right for us at the time there are a large number of loan vendors out there these days. I think the only one I tend to avoid is Banks (or the majority of them) as their interest rates are too high. Companies I have used in the past that have been great with good interest rates have been Tesco, Sainsburys and Northern Rock.

Good luck on your search!

Corty
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Old 05-19-2006, 04:54 PM
ninikins ninikins is offline
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Default Re: Consolidating loans?

The problem is however, what do you do if you don't own any house or property etc? Banks are a lot less likely to consolidate (obviously)
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Old 06-16-2006, 07:53 AM
Benji Benji is offline
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Default Re: Consolidating loans?

Well, you could always buy property.

Seriously, depending on the ammount you owe it may be possible to roll it over into a no interest credit card for the life of transfers - then don't use the card for any new purchases. Allow the credit card company to pay off the interest for you.
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Old 06-17-2006, 07:40 AM
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kelkat kelkat is offline
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Default Re: Consolidating loans?

There are alot of companies out there who's sole purpose is to help people dig out of debt.

You could go with one of these (just type debt consolidation in your search engine) or you could call your lenders personally and ask to speak to a manager. Tell them you are working to pay down your debt and can they work with you to lower your payments or interest. Sometimes that's all it takes.

Make sure that you stay current on your payments and people will be more willing to work with you.
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Old 06-19-2006, 02:51 PM
Benji Benji is offline
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Default Re: Consolidating loans?

Beware of some debt consolidation companies. They may get a settlement for you and you may pay less or even find a reduction in your principle, but it can affect (in a very negative way) your credit score.
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Old 06-24-2006, 10:16 PM
Green Diva Green Diva is offline
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Default Re: Consolidating loans?

Wll, you could go with a second mortgage against your homw or a signature loan from the bank. I personally would stay away from debt companies.
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Old 06-29-2006, 09:42 AM
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kelkat kelkat is offline
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Default Re: Consolidating loans?

Would consolidating really help you all that much? Could you just pay extra on your lowest loan until its paid off and then move that amount to paying extra on your next loan and so on. That way you save in all the hidden fees that tend to pop up PLUS you are that much closer to being debt free.
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Old 06-29-2006, 09:50 AM
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kelkat kelkat is offline
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Default Re: Consolidating loans?

Do you really need to consolidate? Could you just pay a little extra on the smallest loan until its paid off and then move that payment to the next loan and so on? This has the benefit of NOT requiring any more fees AND not requiring any collateral PLUS you will soon find yourself debt free.
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Old 06-29-2006, 02:25 PM
Benji Benji is offline
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Default Re: Consolidating loans?

Oh, come on Kelkat - that's too easy.

Good advice - not universally followed.

Pay off early? Sounds good.
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Old 07-01-2006, 09:01 AM
brian brian is offline
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Default Re: Consolidating loans?

There's always the possibility of approaching your current creditors and seeking an extension of the payment term if you're having problems in the short-term.

That *would* mean paying more in the long run, but I can appreciated that when things get really tight it's good to look at options.

kelkat is full of good sense, though - trying to repay one or more early is quite possibly the best idea, though, if you're able to.
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Old 07-27-2006, 09:07 AM
Kevin Flower Kevin Flower is offline
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Default Re: Consolidating loans?

Ya you can, but you just need to check all the options.
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  #13  
Old 09-05-2006, 07:36 PM
parrotbay parrotbay is offline
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Default Re: Consolidating loans?

I refuse to go into consolidation. However, I can see the problem if your finance charges are horrible. I currently have a loan with a finance rate of 30% which makes me sick. I didn't read the fine print when signing and now I'm paying forever. However, I am paying more than the minimum so I hope to have it paid off before too long.
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Old 11-08-2006, 04:23 PM
bangfor bangfor is offline
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Default Re: Consolidating loans?

The best advice is the one that told you to do a search and donít forget to include your region, wherever you are. There are many companies whose sole business is to consolidate loans. It'll be tailored according to your ability to pay and that includes the interest. To cap it off, some of them even can get a loan deduction or reduction from your lenders, because there are channels these companies know, and mention it to them when itís time to approach one of them. But you shouldn't sound like you are shopping around for something a little bit better, you really have to show them that you need help and thatís when they will work on the deduction.
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  #15  
Old 11-28-2006, 01:13 AM
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sweet_mayhem sweet_mayhem is offline
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Default Re: Consolidating loans?

Quote:
Originally Posted by brian View Post
There's always the possibility of approaching your current creditors and seeking an extension of the payment term if you're having problems in the short-term.

That *would* mean paying more in the long run, but I can appreciated that when things get really tight it's good to look at options.

kelkat is full of good sense, though - trying to repay one or more early is quite possibly the best idea, though, if you're able to.
great point there, brian. although if you search online, a lot of articles would give you several options in consolidating your loans (e.g. credit card transfers, home equity loans, borrowing from relatives ), my vote goes to kelkat's suggestion which is one of the basic rules in paying debts wisely.
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