£30000 Loan

lionelflare

Hello All,

Im looking at getting a £30000 loan to pay off credit cards and was wondering if a loan is the best way to do it. I bought a house a couple of years ago and rather foolishly got part of the deposit from a CC balance transfer. Im now finding it increasingly frustrating to have to juggle my 7 CCs every few months to make sure that im not paying any/much interest on them. I think if I get a loan I will have a definate date that it will all be paid off and it will be quite nice knowing that will be the end of it.

Any suggestions?

lynzpower

30k is more than most personal loans allow AFAIK

WHy not come over to the debt free wannabeee board, conslidation is very rarely the anser

jonesMUFCforever

CCA Only covers loans up to £25k.
You won't get anything more than that on an unsecured basis.

lionelflare

does that mean I can get a loan for 30000 secured on the house?

If so what exactly does this mean?

Im in a job that is pays about half basic and half commission and last year I earnt 45000 my missus is on about 25000. Could we both get a personal loan each to cover the CCs?

Sorry for not been too knowledgable on this!

lynzpower

dont secure for gods sake-

Why dont you just pay the debts off? It seems you have a great income between you, and consolidating will only mean extra interest on top of the interest, seems crazy to me, especially as Ive consolidated more times than I can remember

lionelflare

I dont understand how i will pay more by consolidating into a loan (sorry if i sound a bit dumb on this) I sometimes forget to transfer balances on my CC and get 2 or 3 months at 17.9% or so. Would I not be better just having all the debt in one place so that I know how much im paying and know when it will be paid off?

I know that If I paid off the CCs and was disciplined with the transfers then in theory i shouldnt be paying much interest but its the hassle and I sometimes forget when i need to switch so end up paying the big interest?

james32_uk

Lots of secured loans are huge money traps. See http://forums.moneysavingexpert.com/showthread.html?t=235314

lynzpower

I know that If I paid off the CCs and was disciplined with the transfers then in theory i shouldnt be paying much interest but its the hassle and I sometimes forget when i need to switch so end up paying the big interest?

martin has a tart alert somewhewre on the site that will text you to remind you when to change your cards. Couldnt you go for a low life of balance card to transfer onto, some are as low as 5% if you cant get 0% any more.

Mercuryrising

You can get a maximum of £25,000 per loan but AFAIK there's nothing to stop you for applying for two seperate loans with different banks and getting the 30K this way.

But please please be careful and don't take out PPI and make sure the loan's flexible (ie you can make extra payments whenever you want).

Debt_Free_Chick

lionelflare wrote:

Hello All,

Im looking at getting a £30000 loan to pay off credit cards and was wondering if a loan is the best way to do it.

Usually "no". Far too many people pay off their CCs and then go on to spend on them again. So they end up with a loan ... and huge balances on their CCs as well.


Consolidation is only an option if it's part of a very well planned debt management plan. Do you have one?

I bought a house a couple of years ago and rather foolishly got part of the deposit from a CC balance transfer. Im now finding it increasingly frustrating to have to juggle my 7 CCs every few months to make sure that im not paying any/much interest on them.

So the original deposit is now spread over 7 different cards :eek: ? Or is there other spending on those cards, too?

I think if I get a loan I will have a definate date that it will all be paid off and it will be quite nice knowing that will be the end of it.

But you can have a definite date for repayment (your "Debt Free Date (DFD)") even if you keep the cards. In fact, you should have a DFD even though you have the cards.

I'm sorry, but it really sounds as though you don't have a firm handle on your finances. You really should know how much it will take over how many months to pay off the cards. Yes, a loan will turn this into a "plan" but you should have a plan anyway.

You won't get a personal loan for £30k as the Consumer Credit Act only regulates unsecured personal loans up to £25k.

In order to pay off your debt, you may need to cut back on some luxuries or non-essential spending for a while. This means that you need a budget for all the things you must pay e.g. mortgage, council tax, bills, food etc.

Do you have one? If so, post it here and we can suggest how you can save money on essentials and cut back on non-essentials. This will free up money each month for you to chuck at your debts.

Rearranging finance is the last step in paying off your debts. The first step is a robust budget. So if you don't have one, do one now so you can see exactly how much you can afford to pay off your debts each month. We can then help you to decide which debt to pay off first (having met the minimum repayments on each card).

Please post your budget (SOA - Statement Of Affairs) so we can be more precise with our suggestions.

Regards

DFC