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

BLT_2

drummerp wrote: »

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

Just to spur you on

5000 at 9.2 = 38 pounds interest per month

The more you can transfer to that card the bigger your savings
5000 at 28.9 = 120 pounds interest per month

Its a big difference.

MFWannabe

drummerp wrote: »

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

If you have 100k available then there is no way you will get a loan; you have twice your combined salary available. Best thing to do would be to post an soa so we can see all incomings and outgoings and advise where you can make cutbacks to get these debts paid off. Make sure you list all APR's

BLT_2

FREEZ wrote: »

If you have 100k available then there is no way you will get a loan; you have twice your combined salary available. Best thing to do would be to post an soa so we can see all incomings and outgoings and advise where you can make cutbacks to get these debts paid off. Make sure you list all APR's

Or alternatively you could just sit there and work out the APRs and avoid the tired old comments on SOAs about cutting down your expenditure on clothes, sky, mobile phones etc etc.

SOAs are just there to entertain the financial voyeurs out there so that they can congratulate themselves on their own financial acumen

chattychappy

BLT wrote: »

Or alternatively you could just sit there and work out the APRs and avoid the tired old comments on SOAs about cutting down your expenditure on clothes, sky, mobile phones etc etc.

SOAs are just there to entertain the financial voyeurs out there so that they can congratulate themselves on their own financial acumen

Wow, cynical. But it somehow chimes in.

Agree, the OP hasn't said he's having difficulty paying. Just paying too much. Looks like he's got wriggle room to shift balances to lower APRs and make savings that way. If he is in sight of clearing any balances totally, he might get a decent BT offer.

CLAPTON

just a few further thoughts

it's fairly obvious that to pay off debt you need to pay as much as possible each month and pay as little interest whilst doing so
so
- do try to transfer from high APR to low APR debts even if a little at a time

-do pay as much as possible on the highest APR debt and the least on the low APR debts: however never if possible pay the minimum amount as this is now being recorded on credit files and makes it look like you are struggling to pay your debts (think maybe £10 more than the minimum)

-do review your budget; many people are quite shocked/surprised how much is spent on junk or trivia once they start monitoring their spedning
so
-do fill in a budget sheet (an SOA) .. a good format is http://www.makesenseofcards.com/soacalc.html
-do monitor your actual spend by keeping a spending diary and write down everything you spend and compare with your budget
some people find it very useful to post up the results for people to comment on; but each to their own

drummerp

Thanks everyone for your advise.

Today I transfered 17K to the capital one CC with only 9.2% APR. Interest should only be about £130 ish so I've set a standing order to pay off £300 every month.

I've applied for yet another CC with 0%APR for 12 months to cover the other 10K well my wife have, hopefully it'll be approved then we can pay at least a further £300 on that card every month aswell.


Thanks again, I'm sure we will see it reducing now every year unlike the last year.

DP

chattychappy

Make sure the standing order hits the account comfortably between the statement date and pay-by date!

Shimrod

drummerp wrote: »

Thanks everyone for your advise.

Today I transfered 17K to the capital one CC with only 9.2% APR. Interest should only be about £130 ish so I've set a standing order to pay off £300 every month.

I've applied for yet another CC with 0%APR for 12 months to cover the other 10K well my wife have, hopefully it'll be approved then we can pay at least a further £300 on that card every month aswell.
DP

Although it's nice to see the balance on the Capital One card coming down, if you don't get the 0% card, (assuming the APR is higher on the wife's cards) you would be better paying the minimum off your Capital One and using all spare cash to pay down the wife's cards first. That would save you on interest charges.

gazza975526570

BLT wrote: »

Or alternatively you could just sit there and work out the APRs and avoid the tired old comments on SOAs about cutting down your expenditure on clothes, sky, mobile phones etc etc.

I really agree with this - you see someone with a £40k debt and the suggestions are getting rid of a £20 a month Sky subscription!!!!