Consolidating 4 credit card repayments

Chef1980uk

cc1 - £2000 - repayment £55 apr 29.9%
cc2 - £1490 - repayment £50 apr 24.9%
cc3 - £755 - repayment £39 apr 26.090%
cc4 - £260 - repayment £8 apr 27.9%

Existing £10k loan - repayment £239 2 years in to 6 year term

Hi, my repayments are crippling me for my credit cards and i can now only afford the minimum repayments as seen above and i'm wondering if its feasible to shift them either to a new loan, or on to my existing loan effectively starting it again. In either case would the repayments work out at no more than half of what im currently paying for the credit cards?

Thanks in advanced.

Rainbo

The APR's on your existing CC's are extortionate. What's the APR on your new loan? Have you been approved for a loan and are thinking about it or are you shopping around?

Peelerfart

You can ask the question but consolidation loans are dirty words at the moment.

Apparantly some people,not us obviously,have been borrowing money on the understanding that it was for consolidaton,and then spending it on holidays and the like.

jonesMUFCforever

Ask your bank - they can arrange to make the card payments for you if you take a payment slip with you if a loan is agreed.

Tiddlywinks

What was the £10K loan spent on 2 years ago? Was that also for consolidation? What are the card balances against the credit limits for each card? Are they near the max?

Finally, what sort of income do you have to service the debt?

fozmcfc

A lot will depend particularly on what you earn.

A consolidation loan will be seen as what you owe already + the loan amount, because you could well get another xx amount and use it for something other than paying off the CC's.

Looking at your post though, are you sure you really can afford to borrow more money. You could be out of luck anyway as you are only managing to pay off minimums on cards, so clearly you are struggling financially.

Unless you are serious, even if you did get an extension to the loan and pay the cards off you really have to start getting disclipned and cut the cards up. Otherwise like many including myself, you'll just end up with a larger loan to pay off and the cards back up to the stage where the minimum is the maximum you can afford to pay.

Chef1980uk

Thanks all. all cards are near their max. The loan was taken out in 2001 for our wedding, then with 12 months left to pay back in 2008 i got a letter asking if i wanted another one, which i did to pay off the credit cards plus the remainder of the loan. I know i should have cut the cards up and even closed at least 3 of the accounts, but didn't as i could afford the payments on top of the new loan. Now though its very different. Here's my budget sheet:


Union - £11
Website hosting - £12
cc1 - £8
cc2 - £55
cc3 - £39
cc4 - £50
Electricity - £76
Car - £200
Car Insur - £32
Home Insur - £19
Home Phone - £60
Overdraft fee - £5
Loan - £240
Mobile Phone - £15
Petrol - £200

TOTAL OUTGOING - £1022

TOTAL INCOME - (currently) £1108

APR on the loan is 14.9%

As you can see i'm starting to cut it close now.

CLAPTON

your circumstances are very unclear
what income does you wife have
why is their no allowance for groceries,rent, mortgage, council tax, water, entertainment etc etc

try this and add details about you family sistuation
http://www.makesenseofcards.com/soacalc.html


your income is quite modest; based on that alone and with your existing debts you have very little chance of getting another loan

Chef1980uk

Sorry, my wife's income covers what you have stated and that comes from Child tax credit and child benefit.

yorkshire-lad

From reading the post above it seems you have already consolidated once,why do it again to get in this mess again?
You say the bank offered you another loan and you took it to pay your cc's but now your struggling as you have maxed out these cards.

Robbing Peter to pay Paul is not the way to go,you need to tackle these debts without taking more credit.
I would pop over to the debt free wannabe board and paste a SOA

CLAPTON

Chef1980uk wrote: »

Sorry, my wife's income covers what you have stated and that comes from Child tax credit and child benefit.

you need to form up a proper budget as a couple
on paper you have a spare 100 ...where does it go?
the format I've already give is a good starting point