Is debt consolidation the best bet?
Written by Matt B · first published 30/01/2008
Whenever I go to the bank to reorder my finances the subject of loans comes up. If I am in good credit with the bank (ie not running on the overdraft at the time) then I am offered large loans. If I am into the overdraft then I am offered smaller loans with significantly higher interest.
The last time I had the distinct lack of pleasure to visit my bank (now inconveniently relocated to Westwood Cross) I wanted to rework several arrangements to free me to make a vital purchase that a system error had made ten times harder than it needed to be. Given I was actually only trying to spend £200 this was all a bit much. The options were:
(a) Have the bank admit they were at fault (never going to happen).
(b) A small loan (just £1,500 over a year - the smallest on offer)
(c) Redistribution of credit - so that the credit that already existed was all in one place.
As soon as I said the magic word "loan" the bank manager did everything short of pull a gun on me to try and make me consolidate everything into a massive single loan. Now quite aside from the fact that I would have had to pay an arrangement fee for this was the fact that the interest rates were higher than my current arrangements.
I honestly thought I was going to have to do something extreme like slap the guy or shout in his face to get him to shut up about such loans. I needed a small amount of liquidity to keep the well oiled machine of the family finances running after the bank cocked up.
Of course, as always, it is always "a different department" and they are "not at liberty to discuss that".
My current situation sees me making small month payments on a handful of credit cards. sometimes I pay more than the minimum sometimes I do not. It depends on the needs of the current period.
What they were asking was that I take out a loan so that my payments were fixed rather than flexible and all happened at the same time (there being only one payment).
No, sorry mate, but I am happy with the fact that on any given week my income is not totally eaten with payments. I am happy with the fact that I can pay my borrowings off faster or slower as things come up, change, or slow down. This enables me to be free.
I've had a loan before and trust me on this, they are not nice.
Anyway if the HSBC credit card had not thrown a system error while I was paying I would not currently need to free cash to repay a relative. Had the bank worked properly in the first place my flexible arrangements would have meant that I did not have to visit Westwood Cross twice. Nor would I have had this bloke trying to force a loan onto me.
A loan I actually did not need.
It was sorted out in the end but only after he tried to sell me every financial package available all of which I get at a better price elsewhere. To be honest I am seriously considering moving to a different bank. I can phone the council offices if I want to be fobbed off with excuses and given the run around.
The last time I had the distinct lack of pleasure to visit my bank (now inconveniently relocated to Westwood Cross) I wanted to rework several arrangements to free me to make a vital purchase that a system error had made ten times harder than it needed to be. Given I was actually only trying to spend £200 this was all a bit much. The options were:
(a) Have the bank admit they were at fault (never going to happen).
(b) A small loan (just £1,500 over a year - the smallest on offer)
(c) Redistribution of credit - so that the credit that already existed was all in one place.
As soon as I said the magic word "loan" the bank manager did everything short of pull a gun on me to try and make me consolidate everything into a massive single loan. Now quite aside from the fact that I would have had to pay an arrangement fee for this was the fact that the interest rates were higher than my current arrangements.
I honestly thought I was going to have to do something extreme like slap the guy or shout in his face to get him to shut up about such loans. I needed a small amount of liquidity to keep the well oiled machine of the family finances running after the bank cocked up.
Of course, as always, it is always "a different department" and they are "not at liberty to discuss that".
My current situation sees me making small month payments on a handful of credit cards. sometimes I pay more than the minimum sometimes I do not. It depends on the needs of the current period.
What they were asking was that I take out a loan so that my payments were fixed rather than flexible and all happened at the same time (there being only one payment).
No, sorry mate, but I am happy with the fact that on any given week my income is not totally eaten with payments. I am happy with the fact that I can pay my borrowings off faster or slower as things come up, change, or slow down. This enables me to be free.
I've had a loan before and trust me on this, they are not nice.
Anyway if the HSBC credit card had not thrown a system error while I was paying I would not currently need to free cash to repay a relative. Had the bank worked properly in the first place my flexible arrangements would have meant that I did not have to visit Westwood Cross twice. Nor would I have had this bloke trying to force a loan onto me.
A loan I actually did not need.
It was sorted out in the end but only after he tried to sell me every financial package available all of which I get at a better price elsewhere. To be honest I am seriously considering moving to a different bank. I can phone the council offices if I want to be fobbed off with excuses and given the run around.
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