Consolidation of student loan/card debts via a loan

Caryanne2006

Hi, I am not sure if I am doing this right but I need some financial advice and my bank seem to be pants at it.

I finished my degree in 2007, did a postgrad which finished in 2008.

I am currently teaching and earning £30 000 a year and rent.

Unfortunately I have a student overdraft of £2000 and some credit card debts of about £1500.

I really want to clear these as I am paying 18% on them now, which is total madness!

For some reason, although I haven't had any credit card problems, other loans and earn a good amount I can't find a decent loan to consolidate all this debt.

My bank says I can't get a graduate loan because it is only for 'training' jobs.

Any ideas would be really useful.

Thank you

Rob71

Hi,

I'm guessing your student loan is really dead cheap borrowing - so don't be in a rush to sort that out just yet. What about a 0% balance transfer for a year onto another credit card (for your existing card debts)? Then try and clear the debt whilst it's not costing you interest (or transfer once more at the end of the year)...

Just an idea - I guess it depends on your current circumstances...

Caryanne2006

Hey, I would, but no matter what I can't get any more credit cards out. I have checked my rating/score and my credit rating is good, but I just get declined.

My student overdraft is not cheap, it is at 17.8%.

Any more ideas?

CLAPTON

your total debt is 3,500? (excluding student loan)
your income is 30,000
you're on the electoral roll?

how many credit applications have you made in the last 6 months and the last 12 months?

normally you would have no real trouble getting a modest loan but lenders seem to view being in the OD as a sign of some-one in trouble and unable to manage their finances very well.

how much are you paying off each month?

lynzpower

Rob71 wrote: »

Hi,

I'm guessing your student loan is really dead cheap borrowing - so don't be in a rush to sort that out just yet. What about a 0% balance transfer for a year onto another credit card (for your existing card debts)? Then try and clear the debt whilst it's not costing you interest (or transfer once more at the end of the year)...

Just an idea - I guess it depends on your current circumstances...

definately agree! dont make the mistake I made!

I consolidated my student loan into a lloyds tsb graduate loan at 7.7% :rolleyes: the interest on the Student loan at the time was about 3.3 - now I believe its even less!

Why oh why did I end up paying the loans at a higher rate?? because i was daft and i wanted a "solution" MISTAKE.

I would pop over to the Debt free wannabee boards and take some advice about how to structure your debt payments to make it manageable.. It seems mad you are struggling so much that consolidation seems the best option- usually it isnt.