Loan to clear credit cards debts.

Kittee-Kat

Can anyone give me some advice please? I've got 4 credits cards with a combined debt of £4000. I can usually only pay the minimum payments each month that totals about £80. I've been thinking about getting a loan for the £4000 to pay them off but after reading certain things its a bit scarey and I dont know what to go for. I know some loans say a low rate of interest but it doesnt always mean thats what you'll get. I was going to go for an 84 month repayment option which even at a bit more than the 5.9 rate (eg 10.8) means my debt would be cleared in 7 years....and also lowers my payments slighly each month. I did a check on a site and it came up with if i just carried on paying minimum for credit cards it'd take me about 25 years to clear...arghh...so this seems a better option
Does anyone know what AA loans are like? I've not heard very good things about Northern Rock tho...and I've noticed alot of bad stuff about loan protection...
Any advice gratefuly received and thanks in advance....

Gemmzie

No no no no! A consolidation loan is NEVER the answer

Come over to the Debt-Free Wannabe board and post you SOA (statment of accounts - your ingoings and outgoings for a month).

And I'm sure they'll find a way to help you pay off your debts, and which loans are best to pay off first (known as snowballing),

jonesMUFCforever

Consolidation MAY be an answer but only if the credit cards are cut up to stop you spending more on them and the loan company accept overpayments.

mrcow

7 years is a long time to pay off a debt of £4000 (even if you do manage to get 5.9%).

I think a trip to the debt free wannabe board would be a good stop for you. Just try posting up your outgoings. I'm too worried that a consolidation isn't going to solve your particular problem (which is spending money that you simply don't have!).

jay78

Why don't you get a credit card which has a low apr. For example halifax does one for 5.9%. Make sure you don't use and pay it off every month?

kevin_M

yes get yourself over to DFW board loads of us guys over there that can help..

Consolidation is only a answer if u cut up the cards.. if you keep them handy U will spend on them again with the excuse... (i will pay it off at end of month) then before you know it you will be getting another Consolidation to pay off last loan and Credit cards again. etc

Kittee-Kat

Thanks everyone, will have to check the other out later, got vistors coming today.
I dont actually use my credit cards now, havnt done for a long time and dont plan to,except one which i have my internet on and i pay that each month on top of minimum payment..the fact is the debt mounted up over years when i had to rely on c/cards and with the interest rates they just dont seem to go down much. A couple of them were new ones which i used to transfer balances to take advantage of 0% interest for however many months it was on. As i only work part time now its hard to get accepted by any others to take advantage of 0% again and i thought paying over 6-7 years was better than the next 20 + years...lol.
Will get back to you and thanks again...

loulou58

I think it may prove hard to find an institution who will offer a £4000 loan over 84 months at a low rate. Most lenders lend up to 60 months for loans less than 15k any more and they can take that up to 8 years. If you find a company willing to take just 4k over 84 months you'll pay a helluva lot more interest than 5.9% as it most likely wont be a large institution. The first thing i'd do is what Gemmzie has said, have a look at snowballing and check the timescales and interest payments out on there before you commit yourself to such a long loan.