loan granted.

JBsplit

i have just been granted a 20K loan from northern rock at 7.4% i havent taken it just yet but i like the thought of being able to chop up a total of 8 credit cards.!!!
although its a longer term than the cards may of been its a monthly saving of £300, and at this time in my life i realy realy need that extra so the increased term is worth it for me....... i think.

comments please.

trickievickie

hi dont know alot, but have bin lookin for an unsecured loan meself, there is alot of information that people have commented on northern rock. go to thread-page 4. it might help! why dont u try moneysupermarket.com they find u the best loan to suit ur needs, worth a try hey? good luck anyway.

Debt_Free_Chick

JBsplit wrote:

i have just been granted a 20K loan from northern rock at 7.4% i havent taken it just yet but i like the thought of being able to chop up a total of 8 credit cards.!!!
although its a longer term than the cards may of been its a monthly saving of £300, and at this time in my life i realy realy need that extra so the increased term is worth it for me....... i think.

comments please.

But is it cheaper? Multiply the number of months of the term of the loan by the monthly repayment. How much to you pay out in total? How much would you pay out if you put the same amount to your cards.

Have you been snowballing?

Jessiepig

Have they sold you insurance on this loan. There has been loads of bad press on here about northern rock loans.
This will only work if you cancel all credit cards and do not get one again until the loan has been paid for. Along term thought,
Also have you got the best deal on your cards and you can make over payments which you cannot do with a loan.
Somethings to think about.

Warriorsith

I'd happily take the loan knowing that I'd be down to just one monthly payment rather than 8, so less stress each month, either way definately get rid of the cards once you get your loan. You wont want anymore excess debt on your hands and learn to say NO when banks send you CC applications.

JBsplit

well its all my total lack of planning that has led to 8 cards totaling almost £550 a month.!!! the loan will be £250. its a long term loan and i know with the interest on top i will payback more but i just cant keep up paying £550 a month.
my card companies were not interested in lowering any rates and as i have so many there is nowhere else to move the money to, i did try to get extra on my mortgage but they also didnt want to know.
as far as i understand i can over pay this loan each month.

JBsplit

oh i did try moneysupermarket but within seconds of filling in the form online the phone rang and rang and rang with pushy sales calls.

Mule

I'm in a similar situation myself and although the general consensus on here is to avoid consolidation loans at all costs (and I can see why, ie more interest/debt over longer period) I think they can be helpful if you are struggling to meet your monthly payments. I'm considering doing the same thing myself and obviously cancelling the CC's which to me would be a big weight off my mind.

Sorry that I have't actually offered any advice - just wanted to share my thoughts with you!

as400

£20,000 for £250 a month?...is this a secured loan?....what term is it over?...the discipline will be cutting up those credit cards and refusing further offers of credit as the CC companies will not want to loose your custom.

JBsplit

the loan is UNsecured and its a biggie in that its 120mths, im not planning on letting it run anything like its full term but the payments mean i can afford to do this if i need to.

'mule' the total interest you pay is scary i know but as i know you think like me it sure makes the monthly outgoings easier to handle even if it is for a good few years.

nomoneytoday

Lesson number 1 on this board.

CONSOLIDATION LOANS = BAD, SNOWBALLING = GOOD

There are exceptions, but please address why you have 8 plastic debts and ensure it doesn't happen again. It's your life, if you wanna spend 10 years paying back for a chinese takeaway thats your prerogative.