Should I consolidate my 27K CC's to a loan?

drummerp

HI,

I have 5 credit cards with 27K between them. The last 12 months I've paid about 11K to the credit card companies and paid off about 1K the rest was interest.

Should I now get a loan to reduce my debt. If so from where and how.

Thanks for your help in advance.

DP

BLT_2

drummerp wrote: »

HI,

I have 5 credit cards with 27K between them. The last 12 months I've paid about 11K to the credit card companies and paid off about 1K the rest was interest.

Should I now get a loan to reduce my debt. If so from where and how.

Thanks for your help in advance.

DP

This amount of interest would imply that you have 27k of debt at circa 36%, surely the only cards who charge at this level are the high risk cards, and I doubt they would extend 28k of credit.

This just has to be a wind up

drummerp

No wind up, I really do have 27K on cards and some of the current interest rate range from 15.9 to 28.9%

I might have exagerated a little on the amount of interest I've paid over the last 12th months but it is clost to 10K paid.

I still need some advise on how I can go about paying off the 27K debt as I've had so many CC's over the last few yrs I cant seam to get any more and the interest rates are high now.

Would I be able to get a loan. I'm worried about applying and getting refused and my credit rating going down as its quite high at the moment.

Please please help

DP

LillythePink

It is possible to do this, although not advisable.

I did this once - had the same as you on cc's and got a loan to pay them (most of them) off - but then, guess what.........spent up on them again!

I got a personal loan from Lloyds for 25k - unsecured so it is or was possible

If you do get any sort of loan then cut the cards up and close the account!

drummerp

I've not spent a penny on the CC's over the last 12th months so I'm happy that if I was able to get a loan I wouldn't then spend more money on the cc's I woul actually cut them all up and cancel the accounts.

I just need advise on if its possible to get a loan in these tough times from the banks to pay off my CC's should I tell them what its for or will they just refuse me???

Thanks
DP

BLT_2

drummerp wrote: »

I've not spent a penny on the CC's over the last 12th months so I'm happy that if I was able to get a loan I wouldn't then spend more money on the cc's I woul actually cut them all up and cancel the accounts.

I just need advise on if its possible to get a loan in these tough times from the banks to pay off my CC's should I tell them what its for or will they just refuse me???

Thanks
DP

Personally I would say its highly unlikely. They will look at the 27k you owe, add that to the 27k you want to consolidate it, giving you total exposure of 54k, thats an enormous amount of unsecured capital. They have no way of confirming that you will actuallly pay off the credit card.

I am not sure what your annual salary is, but if it is 30k PA, this would mean that your total debt was twice your annual salary, where I believe, from reading these boards, that the amount they look at being reasonable as 30 percent.

I do not doubt the other poster managed to obtain a consolidation loan at some time in the past, however we are living in a new era. You need to avoid your credit rating dropping as the CC companies do get monthly reports and may see this as an indication you are in financial difficulties, and escalate your interest rate to compensate for the additional risk to them.

drummerp

How about if the loan is split between My self and my wife as the CC's are both ours. We currently have an income of over 55K.

Credit rating is quite high although on experian we have over £100K available to spend on existign credit cards.

I'm really stuck on how I can reduce this debt I or we can afford over £700 per month on a loan or a credit card if its low on interest and we actually pay off the amount of debt over the next say 3-5 yrs.

Surely some thing can be done or any I stuck with these CC's high interest rates.

Cheers
DP

CLAPTON

whats your salary
what do your credit files say
are you a property owner

CLAPTON

Ok

can you transfer any of the high APR debt to your cards with lower APRs

try for relatively small loans say 5 -10k and pay off the highest APR cards; then wait 6 months and try again for smaller loans to pay of the CC.

lindens

why don't you snowball? can you get any low interst cards and transfer the balance?

drummerp

CLAPTON wrote: »

Ok

can you transfer any of the high APR debt to your cards with lower APRs

try for relatively small loans say 5 -10k and pay off the highest APR cards; then wait 6 months and try again for smaller loans to pay of the CC.

I didn't think of that option, that sounds like a really usefull tip. I do have a capital one card with 9.2% interest, thats the lowest one but I dont currently have anything on it so I could transfer some of the dept to that card and get a loan for the rest.

Thanks

DP