hi there
i have a 4000 pound debt that i want to consolidate yet i cant see to be able to get aloan anywhere.
People have suggested debt management but im worried about not being able to get a mortgage ect as its classed as a referal.
Also i have just been had by one of those companies that say they are giving you a koan and take an admin fee off you only to then not give you the loan at all.
Thank you for any help.x.


  1. If you cant get a loan for the amount from a normal bank or building society – I defiantly would not go to one of the dodgy other companies that charge you 150% interest. Can you borrow from a family member – if not talk to your creditors and try to set up a suitable repayment plan. £4000 is not that much if you set your mind to it.

  2. The way it looks right now… I expect the mortgage industry to bounce back around early 2010.
    So with that said, I suggest you hold off on buying a home and focus exclusively on paying off that $4,000.
    Once your debt is paid off, then try for a loan.
    It’s good to be patient.. you’ll be better off in the long run. Trust me.

  3. You are better off making your own arrangements with the company the debt is with. Loans and debt management are the wrong way to go for a debt of that size, you only wanna look into those things with multiple debts over £15,000 or so. Otherwise there not worth it, and will destroy your credit rating. It will take work on your part but write a letter to the company (keep a copy for yourself and send it recorded mail if possible), state that you want to make a repayment plan to pay off the debt, if your being charged interest you can ask if they will freeze the interest as well. Some will comply as they won’t the debt paid not left outstanding for further years. Write out a budget for yourself and work out bill priority. Rent, council tax and credit cards take priority over others such as mobile phone contracts and cable TV. Prioritise each of your current monthly outgoings, after rent, council tax, start off with payments towards loans and credit cards if you have them as these are usually the payments that rack up the most interest. Then list the others, work out how much each month you need to pay towards them. After all your current priority outgoings are budgeted for (remember food and gas and electric etc) Then work out how much you have left each month, and make a offer to repay the £4000 at a rate you can afford but remember to leave yourself something each month for other expenses, clothes and a little pocket money otherwise you will start dipping into your bill money when you need money for your mums birthday present for example and the cycle starts again. When you know how much you can realistically afford a month, write the letter. I would write an amount just short of what you can afford, most companies will write back expecting more, so writing a little less will give a bit of leeway to increase a little to make them think your trying even though its the figure you started with anyway. But don’t go over that amount, if they refuse the offer, take any letters you wrote to them and all letters they wrote back (make sure somewhere in the letter you only wish to be contacted by letter, otherwise they start ringing you day and night. If you write contact by letter only, and they start harassing you for raises you can have them done for harassment). Take all the letters to CAB and they will write to your creditor on your behalf stating the amount you can afford again and this is when companies give up trying to push for more knowing that you’ve seeked help they’ll know your up to date with laws etc and stop trying to push there luck. Once you have an amount set, choose a method of payment. Standing order is best, or a fixed direct debit that you have control over. Make sure you have record of all payments made, so keep bank statements or cheque book stumps as proof how much you’ve paid. Best of luck!

  4. If your debt is from personal loans or credit cards taken out before 1 April 2007 you may be able to get them wiped out. Contact the website for help.

  5. That is some really good advice from spring_rainbows, I cant really add much to it at all!
    If you are looking for a budgeting tool I can highly recommend http://www.budget-planner.co.uk. Its free to use and works on a month by month basis so you can always keep on top of your finances.
    Hope this helps.


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