consolidation loans-Im in deep financial trouble

[filthiestfis]

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?

[Kathyan]

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]

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]

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

[Kathyan]

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

[NiceCupOfTea]

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]

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]

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.