Shall i apply for a new loan????

KellyGT

Hiya

Just after some sensible advice i have a loan with my bank which has an outstanding balance of 3100 on it. I have 3years left as i pay £104 repayment each month.

I also have a credit card which has an outstanding balance of £2800 on it at the moment and in June it comes off its 0% fixed rate.

My dilema is im wondering if i should reapply for a new loan off my bank which covers the amount of the existing loan and the credit card? I dont currently have any other cards to do a balance transfer too (well none that are willing to give me a 0% offer)

I would only be looking at an increase of £15 per month for the new loan amount comnpared to paying my loan now and the minimum amount of the cred card per month. Which doesnt seem too bad as at least the loan has an end date (altho it will be with me an extra two years than my existing loan as that calculation is based on taking the loan out for 5years)

Its just i dont wanna find myself in a position where i cant do a 0% balance transfer. And having had quite a few cards i feel like im running out of options to use etc.

My other issue is that im currently coming off my fixed rate mortgage with nothern rock. Now by just dropping onto their variable rate im going to be saving an extra £100 per month (which i will be paying off extra onto my loan each month as i dont get penalised for doing this) but there is always the worry that when interest rates start climbing again im going to want to jump onto another dfixed rate mortgage which means going through another credit score and analazing debt etc etc which is one of the reasons i dont wanna be gettin a new loan.

With nobody being psychic about the interest rates im not sure when this will be if its guna be at least 6 months plus before i need to do this then all should be ok.

anyhow sorry for the rant any commen sense/advice/help/input greatly appreciated

TheGrant

There's a lot to cover here and some info missing.

What's the state of your other cards? Can you dump them and get a 0% balance transfer on a new card? Or even a transfer with a lower rate than you'll be going up to.

What's the APR on the current loan? You may end up re-borrowing your 3100 at a higher APR.

Can you get a second loan from your bank/anywhere just to cover the 2800 on the card?

From the info you have given, I don't think putting the 100 to the loan will benefit you more than putting it to the card balance.

I wouldn't worry about your future mortgage, you'll still have roughly the same debt which ever way you do it.

KellyGT

TheGrant wrote: »

There's a lot to cover here and some info missing.

What's the state of your other cards? Can you dump them and get a 0% balance transfer on a new card? Or even a transfer with a lower rate than you'll be going up to.

What's the APR on the current loan? You may end up re-borrowing your 3100 at a higher APR.

Can you get a second loan from your bank/anywhere just to cover the 2800 on the card?

From the info you have given, I don't think putting the 100 to the loan will benefit you more than putting it to the card balance.

I wouldn't worry about your future mortgage, you'll still have roughly the same debt which ever way you do it.

Hiya

Thanks for the reply

My current loan with the 3100 is it an APR of 19.9% the new loan to consolidate both debts would either be at a rate of 18.2% for 4yrs monthly payment = £175 or APR of 21.8% for 5yrs at £162 per month.

The credit card debt when it comes off its 0% balance rate in June will be charged i think at a standard monthly rate of 2.5292% (thats all the info i have on the statement sorry)

To be honest the only other option we would have is if i get my partner (the full time main income) to apply for one of the new abby cards with a 0% balance transfer rate! i just hope it would pass the credit check, there is no reason why he shouldnt. But the only thing im cautious of is that fact we was credit searched (and passed) 5weeks ago at DFS store. How long is it safe to leave it before apply for the new card? Then i guess if all else fails i could get the loan as a last resort?

Just done some quick quotes and to just get another loan for the 2800 on its own they wanna charge 24.9% APR on all the terms.

Yeh the debt is guna be there in one form or another i couldnt see that in my haste yesterday lol thinking more clearly today and im not going to rush into any decisions.

Thanks again and any replies appreciated

TheGrant

Okay. I'm rubbish at sums.

The transfer of the 3100 doesn't look too good. There's a drop in APR, but you're extending it by a year

Wouldn't worry about the DFS sofa, just remember to declare it as outgoings.

Excuse me for being nosey. When you say partner, is it a stable enough relationship (none of my business I know) that you could just lump everything together and get a joint loan from a reputable lender? Look at the table of best buy loan providers on here and pick a household name.

KellyGT

TheGrant wrote: »

Okay. I'm rubbish at sums.

The transfer of the 3100 doesn't look too good. There's a drop in APR, but you're extending it by a year

Wouldn't worry about the DFS sofa, just remember to declare it as outgoings.

Excuse me for being nosey. When you say partner, is it a stable enough relationship (none of my business I know) that you could just lump everything together and get a joint loan from a reputable lender? Look at the table of best buy loan providers on here and pick a household name.

Yeh its a stable enough relationship beens years together, mortgage together and im 8 months pregnant with his child :rotfl:

Adding all our debt together and having one main outgoing instead of the several little ones we have seems so scary, as it would mean admitting/seeing the lump sum of money we owe out. And although we are managing fine and gently but surely cutting away at our debt it feels more manageable in these smaller chunks. But i understand your point and i think its something we will have to consider! I shall have a nosey at that table of loan providers now.....:)