Consolidation % Credit Card v Bank Loan

yeuxvert

Hi Forgive me if this has been asked before (I am new to this forum) . I currently have a £7K loan with Sainsbury (costing 219.38 p/m) and was thinking of consolidating does anyone know if it is cheaper to transfer the balances on my credit cards to one or more % credit cards or refinance the loan (would be total of 17,800 costing 371.33 p/m over 5 yrs) to clear the credit cards.

Just about to sell house and go wander for 3/6 months therefore would have little income coming in and want to spend as little capital as possible at this stage. Any and all advice would be appreciated

Many thanks yeuxvert

Tixy

So do you currently have a £7k loan and £10k on cards?

If so then we need to know all the APRs for each balance to tell you what is the cheapest option, or even a possible option.

Are you still working on have you stopped to go travelling? If you have no income getting credit is going to be tough.
If you are still working but no you are going to hand in your notice you should really inform the bank at the time of application (which will again mean you will struggle to get new credit).

yeuxvert

Tixi Hi Wow that was fast! yes, in fact have 6K left on loan and 11,400 on cards (how depressing!). Regarding situation re work I am still working for a short time. My husband works for himself and is internet based and will continue to work whilst we travel he is the majority earner anyway. APRs:
Capital 1 balance 2700 18.55%
B'cd balance 3K 23.9%
MBNA balance 400 1.2408% (mthly)
M & S balance 540 18.9%
B'cd balance 540 19.9%
B'cd balance 190 22.9%
Asda balance 1500 18.120%
Tesco balance 2500 1.313% (mthly)

Very many thanks yeuxvert

CLAPTON

what are you trying to do?

reduce your monthly payments even if it costs you much more over the longer term
reduce the overall cost and interest paid

two very different things

yeuxvert

Hi

CLAPTON wrote: »

what are you trying to do?

reduce your monthly payments even if it costs you much more over the longer term
reduce the overall cost and interest paid

two very different things

Reduce the overall cost and interest paid. Thank you

CLAPTON

to reduce the overall cost

-pay the debts off as early as possible
-pay the debts with the highest APR off in preference to those with lower APR
-transfer the highest debts to lower APR loans.... try for 0% CC or lower life of balance with BT facility
-maybe get a loan to transfer the CC (which have rather high APRs) if you can get a lower APR loan

whats the APR of your current loan?

yeuxvert

Don't know APR of current loan but to refinance and consolidate loan with CC APR would be 8.9%. What is lower life of balance with BT facility?

Regards yeuxvert

yeuxvert

Hi Clapton, sorry took a while but APR of current loan is 8.8%. Not sure how this helps but any thoughts?

CLAPTON

yeuxvert wrote: »

Hi Clapton, sorry took a while but APR of current loan is 8.8%. Not sure how this helps but any thoughts?

iff the current loan is 8.8% then I see litle benefit in changing that as it's a decent rate
so concentrate on reducing the APRs on the CC.

a life of balance CC is on in which you BT to the card and you get a lowish rate until the whole balance is paid off.... so as good as a 0% is you can clear the balance within the promotion period but good if you need longer to clear the balance

e.g
http://www.leedsbuildingsociety.co.uk/creditcard/transferterms.html