Converting credit card debt to loans - pls help

Still_surviving

I currently owe around £23,000 on four credit cards - i keep them up to date, but cannot seem to dent the balance....

Having just finished repaying 2 loans (£780 per month), I approached M&S Money to do the following....

(1) Transfer the balance on their card (£7500) onto a personal loan over 3 years and

(2) Close the credit card, or perhaps leave it with a £1000 limit for emergencies.....

Seeing that Im not asking for any fresh money, and that I am trying to act responsibly, I was livid when the guy insisted on going through all the usual application nonsense, then told me the loan had been refused....

I know my credit rating isnt great, but its not horrendous. Ive had 3 loans with them before, and paid every one back. Im not asking for more credit - just a restructuring.

With interest rates at an all time low, M&S recently notified me that my interest rate was being increased. Are they that desperate to fleece me for credit card rates of interest, they wont entertain a sensible proposal to pay them their money back in full?

In desperation - i rang a debt counselling charity. I was amazed to hear that until i start defaulting, the lenders wont be interested.

Is that my only option? Im at my wits end now - this all seemed so sensible


Any help would be appreciated

RAS

Be grateful. As a general rule consolidating a card into a loan is a very bad idea.

Post a full SOA and we can advise you more effectively.

Burlesque_Babe

^^^^^^^^^

Exactly what RAS said.

RAS

BB it is still worth saying twice.

Link for SOA here http://www.makesenseofcards.com/soacalc.html

Still_surviving

Can you please explain why this is a bad idea?

The interest rate quoted was 8.5% apr which is miles less than what im paying on the card, and the monthly payment was around £240, which is only £55 more than the minimum payment im making now.

Believe it or not, Im an accountant and so I know my budgeting stacks up based on swapping the credit card debt to three year loans (thats not being flippant by the way). I got into debt following a messy divorce many years ago and its taken a long time to sort itself out.

Im just really curious as to why its a really bad idea. I just fancy knowing that in three years the debt will be cleared - i cant see it happening else.

Still_surviving

And sorry - im new here....im sure you are probably right, so please dont think im being pompous or wont listen to reason...

RAS

High do the senseofcards SOA and then snowball your debts on there.

or put both options into the snowball on www.whatsthecost.com, assuming you are making the same monthly payment to both and see what happens.