This loan seems like a 'good' solution!! Is it still consilidation?

rubydoiwannabee

loaner wrote: »

have you applied for it, and have been offered that rate, or is it a "typical" rate?

We have been sent a letter offering us (OH) the loan from our bank, it is agreed, sign here type thing. Even though we have large debts (they are going down) we have a good credit rating, we have never missed a payment, received bank or OD charges etc. So we are just considering all our options really. I think we have a better chance of getting the large amount on a loan than we would on CC balance transfer.

Although I have read all about cc shuffling tonight and have 2 cc with quite a lot available that I could probably get the OD on to... my worry is that we are not paying 3% back monthly at the moment only £70 (1.41% monthly) and any CC is likely to want 3% monthly as a min payment.

LilacPixie

6.7% seems very low in the current climate. Is it a secured or an unsecured loan??

I don't have a need for a loan but my bank (RBS) are offering a typical rate of 8.9% but when you click thru on amounts under 3k its 20.2%

rubydoiwannabee

LilacPixie wrote: »

6.7% seems very low in the current climate. Is it a secured or an unsecured loan??

I don't have a need for a loan but my bank (RBS) are offering a typical rate of 8.9% but when you click thru on amounts under 3k its 20.2%

I'm off to check the APR rate....

rubydoiwannabee

my mistake 7.9% unsecured.

Even if it does vary depending on how much you borrow, it is never going to be as high as the current 12.19% or 17.9%. I'm just not sure though, I haven't written to FD yet and I think in the first instance I will write to them with my SOA and saying I have taken advice from National DL and ask them to reduce the interest rates. It seems to me though, that whilst you are doing ok, e.g. paying min payment or above they are very reluctant to do so.

Maybe I just have to balance transfer what I can and live with it.....

Thanks again for your wisdom, support and relevant questions.

GeorgeUK

It may be advertising loans FROM 6.7%
If you do not need to worry about getting a credit check on your file (3 in 6 months is usually ok) then there is no harm in requesting this and refusing it if the APR is not as you thought.

I wouldn't get your hope up too much though - just incase. And don't jsut go with it because it may save you some money in the long term. Loans are often inflexible and you cannot overpay without penalty. That si why getting a 0% card to pay of a loan is sometimes advised - you can pay the minimum or more depending on your circumstances.

rubydoiwannabee

GeorgeUK wrote: »

It may be advertising loans FROM 6.7%
If you do not need to worry about getting a credit check on your file (3 in 6 months is usually ok) then there is no harm in requesting this and refusing it if the APR is not as you thought.

I wouldn't get your hope up too much though - just incase. And don't jsut go with it because it may save you some money in the long term. Loans are often inflexible and you cannot overpay without penalty. That si why getting a 0% card to pay of a loan is sometimes advised - you can pay the minimum or more depending on your circumstances.

Thanks, I am glad I asked, if not a little confused. I think I want to run before I can walk with the debt free journey. We are a couple of months in and I need to just accept we are doing the best we can at the moment.

You guys really are a great support and it is invaluable being able to write down your thoughts and questions and get views, opinions and answers to them.

I'm still confused, but in a happy, doing all right way.

xxxx:o

SerenaGoode

rubydoiwannabee wrote: »

my mistake 7.9% unsecured.

Even if it does vary depending on how much you borrow, it is never going to be as high as the current 12.19% or 17.9%.

I had a letter like that from Black Horse, offering 7.9%. After I'd gone through the application (and done a credit search, meaning that it would be harder to look for options in the short term) they offered me 14.9%.

Not saying FD will do that, but it certainly wouldn't be unprecedented, especially if your situation looks a bit dodgy from the bank's point of view. But if you're not desperate for a solution, worth a try - if you get 7.9% it may well be worth doing, so long as you don't then run up more debt on the cards.

Good luck either way.

Jacks_xxx

The first thing that struck me honey was that the sums didn't seem to add up. So I put in 18000 285 and 7.9 to the Snowball and it says you'll be paying it until June 2015 which is seven long years away.

We consolidated the small part of our debt that we couldn't get interest suspended on or balance transfer to a 0% in order to get a better interest rate but paid it off within the past two years.

So I'm not totally against the idea in principle but it's got to be the right loan in my opinion and they are thin on the ground right now.

Love Jacks xxx

rubydoiwannabee

Jacks_xxx wrote: »

The first thing that struck me honey was that the sums didn't seem to add up. So I put in 18000 285 and 7.9 to the Snowball and it says you'll be paying it until June 2015 which is seven long years away.

Thanks Jacks, the total isn't that high though it is more like 11500, hence the lower repayment term.

We have decided against it.

rog2

rubydoiwannabee wrote: »

We have decided against it.

For what it's worth, I think you are most probably making the right decision, for the moment at least. 'Consolidation' can, on the face of it, look very attractive and it can, indeed, work for some people - as jacks has confirmed - but it is only one out of many possible 'debt solutions' ad, again in my opinion, should really only be taken on the advice of one of the debt counselling charities. Certainly not a decision to be taken on first impressions of a 'tempting' offer by a finance company.

Good luck on dealing with your debts - if you are advised that 'consolidation' is one of the preferred options for your situation, then the debt charities will also advise on the best routes for choosing where to get that consolidation loan.