Best solution to credit card debt = Tesco loan? Any advice?

anyusernameleft

Thanks for the Debt Free Wannabe forum advice chaps but I say again: paying 30% interest so that only £3 of a £237 monthly payment goes on the capitol and the rest goes on interest has to be the priority to get rid of for anyone.
It is for me anyway.

I might go to the bank to get rid of Virgin but their rate's aren't that great. Better than 30% though! Thanks for the suggestion.

CLAPTON

you may want to consider applying for a smaller loan ... say 6-7K ish
if you were successful then pay of the equivalent CC debt
then, wait a few months so your credit files show the CC has decreased and try another loan and then repeat the process

BAILEYS6904

Debt free wannabee isnt just about knocking £50 off ur grocery bill, and living ons beans n toast for 49 years, theres a lot of people there that have great financial knowledge on how to reduce debt in general. As someone else posted, to give you the loan, would increase your available spending power (or exposure to financial institutions) to 46k, on your income, it wont happen. People there may know a little more about shared ownership, if theres maybe a way to be able to release your equity in the house, it just may increase the options open to you?

anyusernameleft

Thanks Clapton, good plan!

Only way to change minds of Housing Association is with Judicial Review which involves paying for a solicitor a barrister and a court. Believe me I've checked!
I've done the consolidation thing in the past with no trouble at all. Debts were considerably smaller back then but so was my income.
Thanks anyway.

MFWannabe

anyusernameleft wrote: »

Thanks for the Debt Free Wannabe forum advice chaps but I say again: paying 30% interest so that only £3 of a £237 monthly payment goes on the capitol and the rest goes on interest has to be the priority to get rid of for anyone.
It is for me anyway.

I might go to the bank to get rid of Virgin but their rate's aren't that great. Better than 30% though! Thanks for the suggestion.

I would stick with your original replacement card plan. The payments will still be £300 per month but the whole amount will be paying off the debt so you will make a dent in the original 10k debt. Then when the 0% deal is due to end apply for another 0% card to transfer any remainder over again. This is surely a better plan than paying a loan over 7 years?
Yes i have been 'lucky' enough to have got a Tesco loan previously but my income to debt ratio was significantly less than yours.

Emmzi

if you have equity in your home even if you sell it at a loss you'd be in a better position, surely?

emz0801

Hi there, I have a Tesco loan and the apr is nt necessarily what they say on the website. Mine was 16.9%, the loan was for £5300. The process was easy enough, but slow because of the snow situation (all docs had to go to Glasgow). Hope this helps .

anyusernameleft

Thanks Freez, if I get the card I'll do that. It will take more work but it's better value anyway.

Emmzi, the whole point is to NOT sell the house. I ran up the debt so as to not sell the house which is all I've ever had while I was unemployed. I will never get back on the property ladder. I work in London.
If it comes to the point where I do have to sell I shall chuck it here and take my equity to a sunnier clime. Which is kind of tempting anyway...

anyusernameleft

Yikes! Thanks emz0801 that was the EXACTLY the kind of thing I wanted to check!

Mags_cat

anyusernameleft wrote: »

I've done the consolidation thing in the past with no trouble at all. Debts were considerably smaller back then but so was my income.

If I'd typed that and then gone back to re-read it I'd be seeing a huge red flag in my mind.

If I'd had smaller levels of debt and consolidated them but then found myself owing additional, higher levels of debt I'm not sure consolidating them again would be a great idea. What would be better, for me, would be to work out why I was continuing to spend beyond my means.

But everyone deals with things differently, I accept that.