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Considering a loan for debt
I just wanted some advice on the following.
I have £5000 of debt across Credit cards and my student overdrafts ( I have two bank accounts with arrange student overdrafts, one Natwest does not yet charge interest for now, the Halifax one does not charge interest but charges £30 a month). I was considering taking out a loan from Tesco Bank, 14.7% (due to my credit rating) over 3 years, I can afford the monthly payments. I thought that clearing all these debts from various places and just having one monthly payment and one company to pay to would make it easier for me to manage and clear the debt.
I can manage, with some struggle to set money aside to pay my debts off but it would have to be through the snowballing method, also this means I would be unable to save money to help a family member. I am due a guaranteed pay rise next year. The loan sounds appealing because it clears everything and brings it together in one amount.
I have £5000 of debt across Credit cards and my student overdrafts ( I have two bank accounts with arrange student overdrafts, one Natwest does not yet charge interest for now, the Halifax one does not charge interest but charges £30 a month). I was considering taking out a loan from Tesco Bank, 14.7% (due to my credit rating) over 3 years, I can afford the monthly payments. I thought that clearing all these debts from various places and just having one monthly payment and one company to pay to would make it easier for me to manage and clear the debt.
I can manage, with some struggle to set money aside to pay my debts off but it would have to be through the snowballing method, also this means I would be unable to save money to help a family member. I am due a guaranteed pay rise next year. The loan sounds appealing because it clears everything and brings it together in one amount.
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Comments
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What is the interest rate on the credit cards? Would you be able to get a 0% credit card to transfer the balance of the cards to? (I'm guessing not as you say due to my credit rating against the 14% loan
How much do you earn?
You would be better posting an soa so we can advise properly knowing all details; use www.makesenseofcards.com07/12/24: Debt total £9,000
07/12/24: Savings: £20,0000
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