Cutting the cost of loans and CC's

teddybearzero

My first time posting in this thread.... :T

I have quite large amount of debt and for a long time was finding it real hard to keep my spending habits under control with my monthly outgoings more than my monthly income.

I feel now however I've finally got this under control and would like to now cut the cost of my Loans, Credit Cards, etc....

I have 2 outstanding loans:

Loan 1 = £7500 at 21% (3 years left to run and at around £5000 owning now) yes I was stupid at the time)
£190 a month

Loan 2 = £5500 at 8% (just under 2 years left to run and at around 2400 owning)
£110 a month

CC's
TSB = £2500 - £50 Minimum
Barcalys = £2000 - £35 Minimum
Post Office Card = £3700 - £92 Minimum

How can I lower the repayments without applying for another CC or loan? Is this even possible?
I've been rejected many times in the past for loans and credit cards, and I don't think my borrowing is the answer to my problem.

DarkConvict

By lowering repayments you maybe upping the cost of your credit cards and loans.
This is because you pay less over a longer period so pay more in interest.

What you need to do is up your income and lower your outgoings. So post up an SOA in MSE format http://www.makesenseofcards.com/soacalchelp.html

As to applying for cards, dont do more than 3 per 3 months, some say no more than 3 in 6 months.

teddybearzero

When I say "lowering" I mean, lowering the interest I'm paying not the actually repayments.

(Sorry I didn't explain myself properly).

For example the 21% loan. How can I get the interest down on this? Is it worth talking to my bank. Are they likely to lower interest on a loan? When then run a check is this likely to effect my credit score if denied?

thanks...

DarkConvict

I knew what you meant but i wanted to make the point clearer, many people do lower the APR but are tied into a lower repayment with early termination fees. Many loans have early termination so you have to be careful in that respect, that moving providers doesn't cost you a fortune.

You can ask the bank, but they are known to reject and put the interest rate up, you can however stop the rate increase - http://www.moneysavingexpert.com/reclaim/credit-card-interest-rate-increases

Local credit unions may help, but usually its with payday loans they assist with.

The main advice is for most debt is try to move it to an existing account with lower APR if you cant get low credit deals, but do watch out for transfer fees.

Failing that it is looking at the SOA, increase income, reduce outgoings, giving a bigger surplus to pay off the debts. Make minimum payments on all debts and put the surplus into the debt with the highest APR.

Poosmate

It's hard to make an informed opinion without knowing what the apr's are on the credit cards.

Are you paying extra off the credit cards each month? Are the cards maxed out?

If you have one with a lower interest rate can you transfer the debt from the highest apr one to that? To avoid paying balance transfer fees you can do this by spending on it and using the cash you would have used on the spends to pay of the higher rate credit card. You have to be very disciplined to do it this way and it may take a couple of months, otherwise, weigh up if a balance transfer fee will cost less than the interest you will save by doing it that way.

Hope that helps

Poo