Best way of attacking this 11.9% EggLoan?

Mercuryrising

HI all

A few months ago before I had a lightbulb moment and had huge spending problems, I consolidated £11000ish of a 7.9% APR Egg Loan and a £5500ish of an Egg Green credit card to a 11.9% APR Egg Loan and spread it over the maximum period (84 months) - it is currently at £16433. This enabled me to reduce the monthly payments to something affordable (£289 a month as opposed to £460 ish a month). It probably wasn't the best decision at the time but I wasn't being financially savvy then. My goal is to pay off the debts as quickly as possible without going or a DMP or IVA.

I also have another HSBC Loan and a few credit cards - my total debt is just over £30K but I can now spare £760 a month or so to pay off these debts.

Basically I want to prioritise reducing the 11.9% APR Egg Loan as it is by far the worst APR I have at the moment.

From your experience, what is the chance of transferring it to a lower rate with another bank - Sainsburys, Mint (are just over 6%) etc bearing in mind my debt. I suppose it's worth trying but how devastating to my credit record would a failed application be?

If that doesn't work I could also use the Balance Transfer to low APR credit card route to get rid of some of the loan if I don't get a replacement loan.

Hope this provides enough information for advice. Thanks for anyone who helps!

maforduk

Weather the application was a success of a failure does not show up on your credit rating.
What will impact it is the amount of money that is available to you and the amount of searhes that you have created in the past 6 year's.
I think that considering your circumstances 11.9% is a reasonable percentage.
My £10,000 is at 8.9% instead of what the initially offered at 12% as I haggled them down! Can you believe that, I actually Haggled them down! It's true!
Anyway. I think that it's a long shot of what your proposing but none the less.
All the best of luck to you.

Mercuryrising

Thanks for the advice - well I'm waiting for my Morgan Stanley 5.9% LOB card. Hopefully it's got a nice high credit limit, it's a Super Balance Transfer and there's no BT fee... (if the latter two don't come through there are ways around it although it would cost more but still less than an 11.9% APR loan but if the credit's something small then I'm stuffed). I can always try to renegotiate my loan after six months if things go well.

Which one did you haggle down from as a matter of interest?

maforduk

I haggled down the Alliance & Leicester.