Consolidation Loan to pay off cards

lau06380

Hi,

My boyfriend has 5 credit cards with approximately £10k worth of debt on them. Whilst he is up to date and has no problem making payments he is unable to pay much more than the miniumum payments. He would like to be able to take out one loan to pay off all the credit cards and then close the accounts down - so he has only one monthly payment (and one lot of interest) and to get the debts gone. Whats the best way to go about this? He has good credit history.

Will lenders take into account that he is going to close the credit cards down with the loan money or will they assume it is extra borrowing to the debts he already has??

Any info/advice will be greatly appreciated.

THanks

dizzyblonde82

They wont take into account that he is going to close the accounts down so they will see that he is trying to borrow 10K on top of any existing credit he already has. Is there anyway to move the debts onto 0% or low interest cards?

My husband recently applied for a loan to consolidate our credit cards and existing loan but when we actually sat down and worked it out we decided that the best option was to carry on as we were and we will be debt free in 28 months where as the loan would have freed up some money each month we would have actually been paying it off over 50 months.

jonesMUFCforever

I disagree any banker worth his salt will ask him to take in the statements with the credit slips on the bottom to repay the cards there and then.
What they won't be able to do is stop him using the cards to get into more debt.
He would have to write to the lenders to actually close the card accounts.

lau06380

Thanks for the info guys.

In the present climate do you think he is better to make an appointment with is own bank to discuss this rather than go to a new lender?

Thanks