I'm doing the right thing by saying No aren't I?

shellsuit

Recently set up a DMP with the great help from CCCS.

Got a letter on Friday from Lloyds TSB, saying that the amount I owe them (which is 2 loans, 1 CC and a £300 OD = £13k) I can have a loan to cover it @ 2.03% which is £115 a month for either 125 months or 144 months (depending whether I took loan protection or not)

144 months is 12 years!!!

Plus it still doesn't help because my OH's CC and our other debts would still have to be paid which would take us over the amount we pay to CCCS each month. (We pay CCCS £213 a month, OHs minimum payment on CC would be £100 a month, then there are other smaller debts to pay)

I was wondering whether to be cheeky and ring them to say if they can give me a loan for more than they are offering which would pay off our other debts, I might consider it, but that would be silly wouldn't it???? (Wouldn't it?!)

I'm doing the right thing by ignoring the letter and carrying on with CCCS aren't I?

What would you do/suggest?

THE_LONE_RANGER_4

dont go in to more debt, it isnt worth it 12 years is a long time what is the time span cccs 6 years?,the banks will just take you further and further in stop now

kathfisch

Consolidation isn't normally a good solution. The payments and interest might seem attractive but you will pay so much in the long term. And your agreement with cccs can be cancelled if you take on any more credit, I believe. Unfortunately offers that appear to be a solution mostly aren't, the difficulty of getting out of debt is part of the experience, its what stops you from doing it again! Keep at the cccs arrangement and it'll be worth it in the end!

Jolinar

Same thing has just happened to me with LLoyds, I called CCCS and they told me to ignore the offer. You're paying what you can afford, Lloyds are just chancing their luck to try and get more money out of you in the long run. I always give CCCS a call whenever things like this crop up, they are really helpful if you are ever in doubt about anything

black-saturn

All consolidation does is put you in debt for a higher amount, at a higher interest for a longer period of time. Best to just knuckle down and sort your finanaces out yourself.

isgman

Stick to your guns.. and don't consolidate, you will just end up with more dept

shellsuit

Thanks Guys, you all said what I wanted to hear

I just needed someone else other than OH to tell me what I already knew! lol

sanfrancisco

Have you read the small print? I bet you anything that the rate is not 2%. This may be the rate per month or quarter.

You ARE doing the right thing. Say NO!

lynzpower

Absolutely you are doing the right thing by saying A BIT FAT NO. I used to have the lloyds loan ( many moons ago) and I was paying 150 a month, forever. Fortunately my parents offered to take it onto their mortgage and I would pay the same to them every month. It saved me two and a half years. Although knowing what I know about secured loans, not sure that was a great idea either, but I am paying it, and cos they have a lovely flexi mortgage, I can snowball in a few months when my Student loan is paid off. Also the Lloys loan was then I had to pay some early redemption fee for doing this, and they wouldnt let me overpay. NICE.

shellsuit

sanfrancisco wrote:

Have you read the small print? I bet you anything that the rate is not 2%. This may be the rate per month or quarter.

You ARE doing the right thing. Say NO!

It's there in black and white,


Total amount to be refinanced - £13000
Monthly repayment - £115.75/£115.53 } depending on loan protection
Term of loan - 144/125 months } depending on loan protection
Loan APR 2.03%

But I'm ignoring it anyway, I'm happy with things as they are now

southernscouser

Also it's possible you could be breaking the terms of your agreement with The CCCS which could result in them cancelling your DMP! :eek:

Tell Lloyds to shove it!