Consolidation options (Help please)

NeddyB

Hi guys,

Basic summary of my debt is as follows

Loan 1 (LloydTSB) ~ £4k remaining, pay £140 monthly
Loan 2 (LTSB) ~ £6K remaining, Pay £160 monthly
LTSB Credit card ~ £1k remaining, Min ~£35 monthly
Egg Credit Card - ~ £1k owed , Min ~£35 monthly

So about £12k or debt, for which I'm paying about £370 / month.

Is this a reasonable deal? I saw a Sanisburys loan which said I could borrow £12k and pay back £250 a month.

I was turned down for this though. Never miss a payment on my debt so was a but suprised to be turned down. My OTE has just gone up to £45k, and zoopla also declined me.

I could really do with the extra cash flow at the min, so more focused on bringing down my monthly repayments than APR etc...

Any ideas how I might be able to bring down my monthly payments

Thanks in advance

yorkshire-lad

I don't think loan company's take your OT into consideration as it's not a steady income.

What's your income before any OT,bonus etc?

Lenders will look at your total debt amount of around 24k,they have no guarantee you will pay your other debts off.

The best place would have been to try your bank first as they know how you handle your finances.

Edit: failing that,why not ask your creditors mainly your loans to lower payments if your are going through a rough patch,redundancy,illness etc.

NeddyB

Okay, but my total debt is only about £12k (not £24k!!)

I was looking on my online banking, and for £12.5k lloyds repayments were still about £320, which isn't that much cheeper. I was also going to have to repay a total of about £20k, where as the Sainsbury's deal was a total repayments of £14.k or something like that

My basic salary is £23k, OTE is £45k, this is why I need to free up the cash flow each month, as commission is going to be paid yearly!!

yorkshire-lad

Your current debt is 12k but the loan company has no gurantee you will pay these off.
You could get the cash and blow it on a car on holiday and still have your other debt.

Lenders will look at your current debt plus the loan amount you are applying for.
Unfortunately that amounts to 24k and your yearly income is only 23k.

The only loans you may get offered will be on high apr.

I very much doubt you will get a loan of good apr to consolidate.I would recommend going over to the DFW boards and post up your statement of affairs and see where you can cut back.

Apples2

Have you addressed WHY you have ended up £12k in debt?

If you haven't, then a lovely big £12k loan shifts your debt from the cards to the loan.

Double Brucie Bonus now, you have £12k available credit on your cards so you can carry on spending the way you have before......Fast forward and you are another £12k in debt on the cards, plus still owing £9k on the loan.

What then, a £21k loan to consolidate?

Before even considering more debt, get on top of your outgoings, each month should have more coming in then going out.

NeddyB

The debt is a combination of things, and I'm not accruing any more debt.

moved jobs, and took a lower salary but a much higher OTE, hence I've just got less money on a day to day basis. at the same time, had a flat mate move out, and now paying more in bills etc...

The majority of the debt was from buying a car, and doing a training course.

I understand what I'm doing, and I'm not looking to go on some sort of unwarranted spending spree. Just wondering if anyone had any tips which would result in me paying less money out every month

Sarah_Newton

I think, debt consolidation can be an option, but you need someone smart working on your side. Also, you can opt for such consolidation earlier to reduce the cash flow due to debts. You should also think about using credit card debt wisely in the future, so that so much debt is not accumulated.

Dabooka

Just another possiblity, you may find that the company "reviews" it's commission payments during the next year and you may get less or even none.

Believe me it happens a lot, especially at the minute. Don't believe you're going to get the extra until it's in the bank!