Is Loan Consolidation Right Option For Me?

electronicmale

Hello,

This is my first posting and I hope I present this in the correct format.

In summary I currently have a £540 interest generating credit card balance, another £3300 with a discounted rate of interest (£7 per month aprox) until January 2011. Finally I have a loan which was taken out 2 years ago over a 7 year term. The amount originally borrowed was £12,500 at a rate of 7.2%.

My total monthly payments are £125 split to both cards, split £100 to large balance £25 to smaller interest generating card (generates about £14 interest per month). My loan I pay monthly at £190.91. As the calculators will tell you this equates to about £315 per month.

Basing my next statement on assumption that to settle my personal loan and clear the £3300 balance on credit card would equate to £12,500. Tesco Loans offer £12,500 MAX consolidation but with a 2 month pay break. I thought I could use this 2 months to clear the £540 credit card and thereafter pay £249 monthly to the Tesco Loan - which I would be taking over 5 years, the remaining term of my current loan which was originally a 7 year period.

FIRST QUESTION
In order to try and save money, which I currently struggle to do with my monthly commitments, would consolidation be a sensible option for me?


SECOND QUESTION
I currently am employed in the public sector, as much as the department I am employed in has a short fall of staff this does not make my future employment safe, or as safe as perviously deemed to be.

Terefore this presents this question. Should I be made redundant (touch wood this doesnt occur) am I in a better Debt Management position to have an outstanding debt to one comapny or split over 2 or 3?

Note - That by consolidating I would be able to save aproximately £200 a month. All going to plan this would, unforeseen expenses penciled in, allow me to hopefully clear the loan in 4 years whilst saving or having purchases for essentials like a car.

I would be very appreciative of your comments and assistance in this matter. It currently keeps me awake at night with worry.


Thanks

immoral_angeluk

Two words.

Heeeeeeeeeell no.

Seek advice from one of the debt charities, or have a wander over to the DFW board with a statement of affairs.

electronicmale

I am the owner of this thread and would like it removed please.

Can see now way in which I can delete the thread.

Tixy

Click on edit in your original post then choose the delete option.
Or click in edit and remove the text you posted if there is something specific in there you want to remove.