advice please??

rosadee

unfortunately, I cannot do this. i opted out of the apr hikes by refusing to spend on the cards meaning that if i did spend on them, the APR would increase by up to 9%!! I am just unsure whether the reduction in interest if i get a loan is worth the lack of flexibility.

RAS

Thanks

Card 1- 19.9%- £860 1000 – pay something with this card, then pay £120 off Card 5 and close the card altogether.
Card 2-26.9%-£1600 2250 - this is priority 2 - you have almost enough on cards 3 and 4 to shift the debt across over time. Aim to get as much as possible on card 3 in the first instance
Card 3- 18.9%- 1700 – 2800 – fill this with £1100 off card 2.
Card 4- 20.9%- 2750 3600 – then get as much as possible off card 2 onto this card.
Card 5- 26.8%- 120 350 – pay this Off pronto and get rid ASAP

Now go to www.whatsthecost.com and put into it the current scenario and the revised scenario using only you three cheapest cards.

Then cancel both the more expensive cards. if you are really lucky, you may be offered a cheap balance transfer for part of the sum. A low LOB would be better than a short 0% deal.

RAS

Hi just seen your message. On all the cards?

rosadee

On card 2, & 4 :-(
Just did th snowball thing but it is only saving 200 off the interest. Am i mad in not doing a loan which would save me £1000 over 30 months? Is the interest what most people would go for?

dancingfairy

What type of loan is it? If it is secured - ie secured on your house - ie get into trouble then you put your house at risk or is it unsecured?
Definitely avoid if it is secured.
df

Idiophreak

I think if I were you I'd say "in for a penny, in for a pound" and just slog my way through the cards asap (although checking if you can save money with any balance transfers is a good idea - call all the card companies and ask if they'll offer any good rates).

There's no guarantee of you getting an unsecured loan with your history - it could just damage your file further. And if your wages are a little hit and miss, the flexibility of paying cards is probably worth the extra interest.

rosadee

Just tried an unsecure loan for the amount and they have agreed in principle. It means that over the 30 months of the loan i save 1000 pounds on interest. I have 30 days or so to make up my mind so i suppose i am lucky to have breathing space. I just think that 1000 is a lot of money, 33£ per month over 30 months. any other dissenters?:)

thestealer

If you're going to go down the consolidation loan route, I'd advise TEARING UP THE CARDS...burn them if necessary and NEVER use them again. Only then will it end up being worth your while. I've been there...twice :eek:

IWantToBeFree_2

I've been there three times.... a loan is a good idea if you don't spend on the cards again!

rosadee

Yes, if i get a loan the cards are ripped in half. Haven't used them in almost a year and only have them in the frezzer for when i need to contact the card company. Made the mistake of cutting one in half and then couldn't find the number for when i need to talk to them!