Help!

Nottsman_3

Hello all,

I currently have 2 major debts, a loan with £2,759 left on (Paying £162 a month, due to be paid off in March 2011), and a credit card debt of £1,400 (Paying minimum payment, limit of £1,500, lowered from £3,500 in Jan 09).

I have tried to get a credit card and transfer the balance, but the 2 lenders I have tried both refused me because I was too close to my limit. I have now been looking at loans, and I can get a loan through my current bank for either £4,000 or £5,000 and consolidate my 2 debts into 1 and get myself out of debt in 2 / 3 years.

Am I doing the right thing by taking out another loan? I can't really afford to pay off much more a month than I am doing, but the quotes for the loans I have received are in my bduget.

Any adivce would be welcomed!

Thanks.

Rafter

Nottsman,

It all depends on the rate of interest you have been offered on the loan - the objective is to minimise the amount of interest and not think you are 'saving' money each month by consolidating - but paying your debts off over a longer period.

Credit card transfers aren't as good as they used to be with up front fees, but certainly better than sticking on a balance charging 10% + as an APR usually.

Good luck

R.