Best advice before I take the plunge?

Sandyman_2

I would really appreciate some good advice on what I should do. I am about to consolidate the following debts into 1 debt with an APR of 5.5%.

I have checked the figures and I think it's a good plan, can anyone spot any obvious flaws!

Salary = 34000

In the bank on 1st of month = 2200

At the moment paying almost £1000 a month in direct debits which dosen't leave me quite enough every month.

My debts are;

Blackhorse - £7750 APR 8.4 with 35 payments left
Loan Company - £8756 APR 8.99 with 49 payments left
Lloydstsb - £2877 APR 7.56 with 19 payments left
Lloydstsb - £4301 APR 9.42 with 33 payments left
Advance Credit Card - £6000 APR 5.9 (but have spent on card since switching)

I have seen some of the great advice handed out on here. I have been working hard at my debt for a year before discovering this site and so I feel that I'm on the right path; I just need some direction.

Thanks

grumbler

1. Check all your loans on ealy repayment charges. Thay may be very high.
2. Be preparerd that with such amount of debt you will not be given 5.5% rate.
3. Next time you transfer a balance to a credit card cut it stright away.

Old_iron_balls

Hi sandyman.
well done for posting - its not easy.

Consolidation isnt always the best way.
Looks a great idea, one monthly payment etc but there is much more to it than that.
Do a search under consolidation and have a good read before you make your move.
Others will be along soon to advise but until then read & research

The_Boss

Probably best to work on one at a time - so that the card is cleared and can be used as bait to get a better balance transfer rate if you phone up threatening to leave.

I would say the best step would be to try to repay one of the loans. You say you are paying tonnes in direct debits, but I bet the minimum payment on the cards are lower than the monthly loan repayment. So give that a try.

Sandyman_2

Thank you for all the advice above.

Am I missing a trick? Is there something else that I can do instead of consolidating? Any advice welcome.

Thank you.

mountainofdebt

having had many consolidation loans in the past I would be very cautious - they have a nasty habit of making you feel wealthier than you actually are and then you find yourself in a worse position.

To be honest it would be a good idea to post a similar thread on the debt free wanabee but at the same time, post your income and all outgoings together with limits, where applicable.

That way people can advise you on ways of ways of freeing up some cash that you can pay off the debts quicker.

Sandyman_2

It's great to be back here after all this time and see what I had written here last year. I didn't consolidate in the end, I took out a 125% mortgage and used that to sort out a large portion of my debt.

Apart from my mortgage which is doing well and my house which is (at the moment) going up in value I have the following left over.

Car Loan - 2277 - 8.9% apr 243 a month DD
Loan Company - 5262 8.9% apr 205 a month DD
Laser Eye surgery payment - 1435 0% apr 119 a month
Private loan - 500 - Will pay off next month

My out goings are as above plus a mortgage of 810 a month.

My income is 2400 a month, plus 470 rent.

Any ideas how I can better manage these finances?