Getting a loan to consolidate my debts

BILLIE

Don't mean this to come across in the wrong way, but you pay your parents £100 per month for board and then buy fillings for sandwiches - I would have been laughing if my DS's had paid me that. Billie

tbourner

If you can't get a card to transfer to an overdraft, try to find one with 0% on purchases, then use it to buy everything rather than using the bank account - effectively over time you transfer the balance since you're not spending on your overdraft any more.

elvis86

I definitely wouldn't get the loan. Not because I don't believe consolidation can work (of course it works, the only time it fails is when the person attempting it is stupid and irresponsible), but because the amount you wish to clear is relatively low.

The interest rate on a £2000 loan will be fairly high (rates generally decrease the more you borrow). So, if for example the total amount repayable is £2500, you will pay approximately £208 a month for 12 months. Presumably before deciding you'd like to pay off your debts in a year, you have decided that you can afford such repayments?

If you can transfer both your credit card balance and your overdraft to a 0% credit card as others suggest, you're looking at a maximum fee of about £80. If you pay this £208 a month off the card, you'll be debt free in 10 months.:)

hollow-point

Do you tell the card company how much you wish to transfer to them or do you apply and see how much the limit is before you move things over. I've only ever applied for the one card so I don't have much experience with how to go about applying

hollow-point

I'm gonna get my details together and apply for a card to transfer them on too if anyone has anymore suggestions that would be best for me. I'm also gonna push for my rise at work tommorrow

Chamone_2

hollow-point wrote: »

Do you tell the card company how much you wish to transfer to them or do you apply and see how much the limit is before you move things over. I've only ever applied for the one card so I don't have much experience with how to go about applying

Assuming you apply online, when you apply for the card they may ask you if you want to transfer a balance. No details about how much or from who, but just if.

This is because when/if you are accepted, they will inform you what your credit card limit is, let's say for example £3000. You will then be able to transfer a balance to your new card at the special 0% rate, typically at a given % (e.g. 85%) of your maximum limit.

Good luck with your application and that pay rise!