Need help/advice with debt.

sapnas

Hi,

I have a few credit cards, overdraft limits etc and I am unable to repay them. I am about £5000 in debt, the amount is spread over different banks. The money I get at the end of my working month isn't enough, to cover the costs.

I heard you can take a loan or something, that repays ALL the debt and then you pay one montly fee.

Virgin are offering a Personal Loan with 7.5%. If I borrow £5000 I will need to repay about £6000 in 60 months time.

Is it a Personal Loan I need or credit consolidation? Or how does it work? Any advice guys?

Thank you.


Will never ever ever ever ever! use CCs again. ever.

MyLastFiver

Sapnas,

If you do not have enough money to meet the min payments on your current debts then taking out a consolidation loan may not be the answer. It may be that negotiating reduced payments with your current creditors would be a better course of action. In order for us to help you further, can you submit a Statement of Affairs, detailing your income and outgoings?

GeorgeUK

You may be able to get a creditcard that offers 0% interest for up to 16 months. Do you already have a MBNA/Virgin credit card? If not you could apply for one of their credit cards. 1st month 3% min, after that min payment is £25 until the promotion ends.

A SOA would help us to see if there are any areas of your expenditure in which you could make savings. From what you have said above, you are being offerred a personal loan to consolidate your current debts. This is usually more expensive in the long run so is rarely advised. There may be a cheaper way to do it.

https://www.makesenseofcards.com/soacalc.html