Trying to close settlemy credit cards

weewizard69

Guys

I have a number of credit cards:




I have been granted a £5k loan to pay of the majority of the cards.

This loan is with Black Horse:

APR 33.9
5 years@ 160.70 - Reviewed every 6 months

I have a poor credit rting 1 x CCJ, 2 x Defaults, arrangments plans on all cards.

I have strugled to get any reduced full and finals of the creditors except for RBS and YB / Cabot.

Most creditors just dont want to know. :-(

Any thoughts on my situation before I sign to this loan greatley appreciated.

Thank you,
Richie

weewizard69

Title shoud read

Trying to close / settle my credit cards

RAS

Hi monthly payments are not the issue - you need to know the aPR FOR EACH OR THOSE cards and then you need to go to

https://www.whatthecost.com and play with the snowball.

Put inthe details of the loan and it will tell you how much you will repay over the term.

Then put in the details of the credit cards.

frankly at 33% for the loan, you would probably be wrong to accept it, particularly as they could increase it dramatically when they review the loan and you would have NO comeback.

Do your cc debts include any PPI or any charges. Have you got late charges on any of the accounts on which you are defaulted?

debrag

so in total £9642 if you get the loan. You paying interest on the credit cards if not then paying £256 a months means they will be paid off in 24 months

weewizard69

Hey RAS

All of my cards are on payment plans with ZERO interest. EXCEPT for Halifax which is on there 19.9 APR rate.

So on that - over the term of the loan I would pay back more than I currently owe on my cards - due to the 33% APR on the potential loan.

But if I consolodate all of my cards onto one debt, would this not be better credit rating wise?

Im sure but not 100% but some of my cards will have have late payment charges on them, but do not include any PPI.

Richie

weewizard69

debrag wrote: »

so in total £9642 if you get the loan. You paying interest on the credit cards if not then paying £256 a months means they will be paid off in 24 months

Yes £9k+ for the loan, over the 5 year term. Of course I could decrese this term and increase the monthly payments.

debrag

still paying as you are now is much better and much CHEAPER thing March 2011 your debt free

RAS

weewizard69 wrote: »

Hey RAS

All of my cards are on payment plans with ZERO interest. EXCEPT for Halifax which is on there 19.9 APR rate.

In that case you would be completely mad to take out the loan.

it will do nothing for your credit rating and will cost you masses more then you need to pay.

Reclaim those charges.

Pay every last penny off the Halifax card ASAP as this is you most expensive debt, and then cancel the card, unless you can get a longer 0% deal from them, or a very low life balance.

weewizard69

debrag wrote: »

still paying as you are now is much better and much CHEAPER thing March 2011 your debt free

Yes i agree, but my credit rating will not start to improve until the debts are settled.

If i paid them of with the loan would this not improve my rating and also show only one existing debt?

this is really a head ache know what to do for the best.

ahhhhh

debrag

no your credit cards will stay on there for 6 years after being settled.

If you are sticking to the arrangement your rating will improve. what does your report say now? £, 1...6 arrears

RAS

weewizard69 wrote: »

Yes i agree, but my credit rating will not start to improve until the debts are settled.

If i paid them of with the loan would this not improve my rating and also show only one existing debt?

this is really a head ache know what to do for the best.

ahhhhh

Who told you that???????????????

The damage you have already done is there for 6 years, whatever you do.

Swapping one set of debt for another debt will make not difference if the value of the debt is the same.

Can we just check something are these 0% deals or have creditors stopped charging interest because you are paying CCJs etc?