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Bank managed loan advice needed

Hi has anyone else done a managed loan through their bank?

Basically i telephoned my bank as i am currently paying £275.00 a month (40 months left) and have a £750.00 overdraft with them. I also have other debts with other companys totalling £6157.00.

I looked into doing a dmp but i have been offered a managed loan to pay off my loan and overdraft at £155.00 a month for 80 months with the option to pay more off if i can afford to. I will be paying them a total of 12400.00 back so i am been charged 1080.00 and doubling the length of the time.

Do you think this is the best thing for me to do or is a dmp the best option?????


Thank you
gemma
Aiming to clear the following debts this year (2014):
Credit Card £900/ Loan £610 /Loan £1,800/ Catalogue £1,800
and I will not buy anything I do not need !!!!
Make £5.00 a day in January £19.00/£155
Sealed pot challenge - 268

Comments

  • GeorgeUK
    GeorgeUK Posts: 7,737 Forumite
    Are you able to meet your minimum payments right now, or almost?
    If so you could post up a statement of affaird and we'll try to see if there are any other savings you could make.
    http://www.makesenseofcards.com/soacalc.html

    What is the interest rate of the loan?

    Just about any time someone asks if they should take a managed loan, our advice is RUN. If the interest rate is really good then it may be worth considering, but i doubt it.
    After falling off the gambling wagon (twice): £33,600 (24,000+ 9,600) - Original CC Debt: £7,885.91

    Dad Gift 6k ¦ Savings & Inv Tst: £2,500
    Loan 10k: £0 ¦ Dad 5.5k: £2,270 ¦ LTSB: £0 ¦ RBS: £0 ¦ Virgin £0 ¦ Egg £0

    Total Owed: £2,270 (+6k) 11/08/2011
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