Bit of help advise.....

Jordanccfc

Hi Everyone been reading various posts for some time. but eventualy thought it would be best to post my circumstances. and ask for your advices...

I have recently just got married and been away on honeymoon etc... to pay for all the things relating to the wedding etc we decided to use our overdrafts to pay off things basicly as a short term loan.

we have 3 accounts and one creditcard all adding upto about £4200.

we are now paying charges on these accounts and also some months we might get a bank charge here and thier. these would add up to a monthly loan repayment. and ideally we would like to get a loan to pay off the debts...

we have moved house in the last week and could also do with some extra cash to sprouce our new house up a bit. but i feel like we are going round in circles.. we cant seem to get a loan for say 7 thousand due to our overdrafts. but we cant pay them off until we get a loan.

any advise please...

thanks in advance Jordan

Tixy

Hi and welcome to the forum

Consolidation loans are not generally recommended on here. Before you decide on the right course of action have you completed a detailed income & expendiure account (statement of affairs). If not this is a really good idea as it will help you see if you can manage your current repayments without getting excess charges or new credit.
It might also help you see if there are any areas you can cut back. http://www.makesenseofcards.com/soacalc.html

If you post the results on here people may be able to advise you better.

If you are thinking you might apply for some sort of credit then it would be sensible to get registered on the electoral roll at your new address as soon as you can, as its takes a month or so to appear on your credit files.

Jordanccfc

thanks for the quick reply...

i have looked into what we could afford and affording the repayments would not be a problem. i do have existing loans, which i have never missed a payment on and its the same with my creditcard. a couple of my loans are due to expire next summer so i may be better waiting til then. it is just slightly annoying to see you making payments of 70 pound to cover cards and charges when that could be paying my overdrafts off. becasue i am getting charged that much i feel like i am stuck in a rut.

ill have a look at that link and let you know the outcome...

thanks again

.

GeorgeUK

Something else that may be worth considering is getting rid of the debt you have now, only quicker. There are some credit cards that allow you to transfer money to a current account as well as the standard credit card to credit card transfer. This is often as part of a promotion, but there are not many that do it.

You may be able to get a 0% credit card for a year and transfer money to pay off the overdraft (you only save money if you don't use the overdraft after that or else you are wasting your time and money). Once you have paid most of the debt off, you may look like a better risk (and can get rid of the card).

Jordanccfc

i dont think i could get a credit card to clear a 4 k debt tho

Thrifty_Pixie

You really need to do the SOA as mentioned by Tixy up there ^ It seems to me that creditors may think you are already over-stretched as it is (current income to credit ratio). Whether you are currently servicing these debts satisfactorily is a moot point.

mrsvicx

I can sympathise as I was in much the same position. I was paying off 2 credit cards (about £3k in total and had an overdraft for another £3.5k. I felt like I was going round and round and the end of each month was horrific!! I took out a 3 year loan to pay just the credit cards and found that I was no better off. I was still struggling at the end of each month and could get no extra overdraft!
I felt that the only way to get out of it WAS to take out a consolidation loan and I paid off the existing loan and the overdraft with a 5 year loan.
This may not be the way for you to go, but for me, I was struggling to survive for the last week or so of each month and just couldnt afford to do anything or even take my little boy anywhere. Just for the peace of mind that I now have, it was the right thing for me.
And in September my little boy will get his free nursery hours and I can put the extra money towards paying off the loan early