Borrowing more to pay off debt and reducing outgoings

becbecs

Hi

New to the forum and was just asking some advice.

We currently have debt which we hopefully could make into one monthly payment over 5 years with a personal loan. (If accepted)

Recnetly applied to Halifax our current bank and was unfortunately was unsuccessful. Loan applied for £15K over 7 years at 19% APR.

Looking at this site am glad we were not accepted.

I have looked at loans and have used the rates checker for 12K this works out @ £241 per month over 5 years.

If I was to borrow 12K and pay off debt, this would allow me to get rid of nearly £400 per month saving me £160 per month.

My question is, is this the right path to take or is borrowing more to pay off debt the wrong way to go.

Hopefully hear from you experts soon

Becbecs

uktyler

Can't you renegotiate with your existing lenders to reduce the interest rates?

Surely by borrowing more you are increasing the term, meaning it takes longer to repay?

CLAPTON

1. post up the details of the current loans
i.e. amouint, APR, minimum monthly payment for CCs
and amount remaining, APR, monthly payment , number of payment left for loans

2. have you stopped using CCs etc?

3. how much do you earn?

4. is your credit record good?

tubby210

I have £2500 loan,£5700 on credit cards and £1500 overdraft looking to get a secured loan to pay off debts.I have a mortgage with £50000 left to pay value of house is about £120000 and I have a3 years lft to pay.Would I get a secured loan and does anybody know a good company. I earn £20000 and my wife earns £5000 credit cards are with egg £4300 apr 26.9 tesco 580 apr 1.9 and capital £520 apr 18.8

CLAPTON

tubby210 wrote: »

I have £2500 loan,£5700 on credit cards and £1500 overdraft looking to get a secured loan to pay off debts.I have a mortgage with £50000 left to pay value of house is about £120000 and I have a3 years lft to pay.Would I get a secured loan and does anybody know a good company. I earn £20000 and my wife earns £5000 credit cards are with egg £4300 apr 26.9 tesco 580 apr 1.9 and capital £520 apr 18.8

best to start your own thread.

tubby210

very sorry

becbecs

Hi Clayton

Many thanks for your responce. Will come back later today if thats OK as its Easter and off to inlaws

Just info of top of my head

Blackhorse Loan £79 per month finishes Jan 2011
CC Balance £6000 Paying £200 per month
Bank Overdraft £2700 Charges currently £60 per month but speaking with bank about this.

Will confirm everything later

CLAPTON wrote: »

1. post up the details of the current loans
i.e. amouint, APR, minimum monthly payment for CCs
and amount remaining, APR, monthly payment , number of payment left for loans

2. have you stopped using CCs etc?

3. how much do you earn?

4. is your credit record good?

becbecs

Hi Clapton

Have Blakhorse Loan

£76.65 per month payment @ 19%APR Finishes Jan 2011

CC with 6K Balance Minimum payment is £90 approx per month nut interest takes the majority of that so trying to pay £200 per month. Typical 13.9% APR

£2750 Overdraft currently paying aprrox £60 per month.

What do you think ?

Keep doing what I,m doing or consolodate with a loan if accepted.

Don't use CC anymore

Average salary per month is about 2K

Credit score as far as I am awhere is OK.

We have a high repayment mortgage which takes just over half my salary.

CLAPTON wrote: »

1. post up the details of the current loans
i.e. amouint, APR, minimum monthly payment for CCs
and amount remaining, APR, monthly payment , number of payment left for loans

2. have you stopped using CCs etc?

3. how much do you earn?

4. is your credit record good?