Loans to pay off Debts

piratess

Good Idea or not .. i have posted in the Loans bit but no luck .... my Partner suggested taking out a loan to pay the debts off at once and then just make the one repayment a month ... is this a good idea or not ??
opinions please ?

thanks again xx

Bargain_Annie

Hi Piratess, I'm no expert but most people on MSE would say don't take a consolidation loan......

It depends on what APR you will end up paying, how long for, and if you can throw every spare penny at your debts to get them cleared asap.

lynzpower

Erm, how is getting a bigger debt paying off debt?

southernscouser

piratess wrote:

Good Idea or not .. i have posted in the Loans bit but no luck .... my Partner suggested taking out a loan to pay the debts off at once and then just make the one repayment a month ... is this a good idea or not ??
opinions please ?

thanks again xx

Yes and no!

Yes, if you are getting a better interest rate and will bring down the total amount you will be paying including interest.

No, more often than not you take the loan over a longer period to reduce your monthly payment. Therefore you are paying more interest over the term and will normally be in debt for longer. Also there is a real temptatio to start using the credit cards again. I know. I've done it many a time! You say, it's only £100, I'll pay it off in full at the end of the month. But you don't and it doesn't take long to fall into the same trap again! :doh:

piratess

Well my Partner was just thinking of getting a bank loan .. he has had one in the past for his car but payed it off just as we moved in together .. ... he saied about getting one over 2 years maybe ... thanks for your reply xx

southernscouser

Also the problem with most loans is that you can't make overpayments on where as with credit cards you can!

piratess

yes i can see your point Lynz .. this is what we have been discussing , pros and cons! i just thought id get other peoples opinions as somtimes it pays to have views from people who arnt involved (i.e not family members etc) ... Thanks for the advice ..

as for the credit cards we have never had a credit card either of us and never would ..... to scary!

**purpleprincess**

lynzpower wrote:

Erm, how is getting a bigger debt paying off debt?

Exactly so piratess, don't do it!!! Too many people here will tell you that that's where they started!:rotfl: I too am one of those! Consolidated twice!! And then racked the cards up again!!:o

Bargain_Annie

You could always cut it up when it arrives and only use it for the balance transfer 0% bit.............:p

southernscouser

piratess wrote:

as for the credit cards we have never had a credit card either of us and never would ..... to scary!

This is a tough one because used correctly they can be a positive thing! But the % of people that use them in this manner must be less than 0.01%! :doh:

I don't want to say to you, get credit cards because if you then spend on them everyone will blame me :rotfl: BUT depending on how disciplined you are it might be possible to get all your debt at 0%!

lynzpower

piratess wrote:

yes i can see your point Lynz .. this is what we have been discussing , pros and cons! i just thought id get other peoples opinions as somtimes it pays to have views from people who arnt involved (i.e not family members etc) ... Thanks for the advice ..

as for the credit cards we have never had a credit card either of us and never would ..... to scary!

Your ADAMs card is a credit card

0% is fine as long as you are disciplined.

Barclaycard will let you trransfer loan amounts with them but they did give my OH a smaller limit than he needed