What do I do

Totty_2

Hi
I have some debt that I would like to clear, have looked at taking a loan to clear debt, but already have a couple of loans.
I f I do decide to to take a loan, should I take the payment protection as that seems to bump up the loan.
Help
Totty

Annie_Fanny

Hey Totty

Welcome to MSE and the DFW forum. You are in the right place for advice on paying back debts!

You haven't given us too much info to go on so what would be really useful is to post a Statement of Affairs (SOA) which is basically your incomings and outgoings and also a list of your debts with APRs etc.

Here's a link to a great thread that will give you guidance on posting an SOA.
http://forums.moneysavingexpert.com/showthread.html?t=107280

Good luck!
Annie

msmicawber

Hi Totty and welcome to the board.

It's impossible to know what would be your best way forward without some more information about your circumstances. If you look at this link it gives information for first time posters about what information to give in order for other posters to help you:

http://forums.moneysavingexpert.com/showthread.html?t=107280

As for payment protection on loans, it all depends on your circumstances, but generally what the large print giveth, the small print taketh away, so it's often an expensive waste of time.

Please post some more information and it will be easier to see how to help you.

msmicawber

Snap Annie Fannie - I must learn to type faster!

HairyHandofDartmoor

Generally speaking loan protection is not a good idea as it bumps up the price so much but as others say, more info would be good.

I would question the wisdom of taking out a loan at all as rather than clearing debt as you put it, you are merely transferring it from one place to another. Will the interest be much lower with the loan? What if you run up the other debts again?

ZTD

This is what the Citizens' Advice thinks of PPI.

Be sure to read the full report, though the summary is damning enough.

MinnieSpender

Very timely post.

Money Box talked about this very subject this morning.

You can read all about it and listen again here: http://news.bbc.co.uk/1/hi/programmes/moneybox/

Dr.Shoe_2

PPI is nothing more than a protection racket and some lenders will even refuse loans to anyone declining PPI. This is actually contrary to OFT guidelines but the lender will say that they have no other cover in the event that the borrower loses their income.

As far as taking out a consolidation loan ia concerned, this is rarely a good idea and you would be better off contacting the original lender and either negotiating reduced payments, restructuring the loan or, if your funds permit increasing payments in return for an early repayment rebate.

Here on DFW we have a "Snowball Calculator" which allows you to work out which loan you should pay off first so that you can then throw the repayment money at your other debts saving both interest and time.

Annie_Fanny

http://www.whatsthecost.co.uk/snowball.aspx

Link to the Snowball Calculator above!

loveandlight

Originally posted by msmicawber

but generally what the large print giveth, the small print taketh away,

I absolutely looove this quote! So funny and so true.............:rotfl: :rotfl:

msmicawber

Thanks, loveandlight, I pinched it from Tom Waites' song 'Step Right Up' and couldn't pass up the opportunity of using it!