Egg Loan

Moopa_2

This is sort of a cart/horse situationbut I've racked up £10000 worth of debt over 4 cards. The 0% time on the cards has run out and I have found it difficult to get cards to switch the amounts to. This has meant going back to the 16-18% interest on the debts and I have just been able to pay the minimum amount of all the cards which is largely eaten up by the interest on the cards. I have found it difficult to organise my debts, occasionally missing payments and having to spend on the credit cards to make it to the next pay day (petrol mainly).

I have had trouble getting fixed unsecured loans at all and credit card companies have been offering me cards with 6 months 0% balance transfers but not enough of a credit limit to significantly move the debt, also the cards tend to shift to 24% so I did not want to get involved in them.

I have chosen to get an Egg Loan at 7.9% and clear all the debt from the cards onto that. I have been accepted but I still feel anxious about loaning out all that money. As soon as I clear the cards I am going to close the accounts and be more wary from now on.

While I am interested in getting a good deal, I'm wary that a) my apparent bad credit seems to have limited my options, and b) That I want a reasonable interest rate on something that I can't rack up more debt on and can take a good chunk out of quickly if money comes my way (I'm expecting some money shortly).

The flexible nature of the Egg Loan seems to point to it being one of the best for my circumstances, so really I'm just looking for reassurance or for someone to point out a massive flaw to me. Anyone?

deemy2004

First things call the card companies up and ask them are the offering any balance transfer deals, then move debt between them i.e. 1 out of the 4 may offer you a lifetime 3.9% or something.

So you move debt from that card to the other card then back to your limit to take advantage of the low % offer

Second apply for other cards with lifetime low transfer debt such as teso, and a gazillion others. So at least a large chunk of your debt will be locked in at a low rate for a number of years so should be easy to pay down.

Robin_T_Cox

Before you get into bed with Egg, read the small print. Then read it again, and check that you understand what will happen if (or when) the worst scenario happens. For example, suppose you take out this loan and then lose your job? How far would any card protection insurance cover you? And then what do you plan to do when the demands start to roll in? And when Egg decide to take you to court?

It is up to you to decide what you can and cannot afford. Egg are not responsible for deciding that. And you, not they, are the best judge.

A better strategy, in my opinion, would be to treat this crisis as an opportunity to do some tough talking to yourself, bite the bullet and do some financial pruning. Can you, for example, sell the car and either use public transport or get a lift to work?

Don't just go on drifting into worse financial trouble, or you will find that you have a bigger financial crisis on your hands. Whereas, if you can raise the cash to pay off at least some of your debt, you will feel (and be) more in control than at present.