Lbm!!!

Andie759

Hi everyone

I've been lurking on here for a while now and it's helped me so much after my LBM in February 2010.

I racked up the debt because my ex kept leaving jobs and I was funding him for about 6 years - stupid stupid but you live and learn and I can safely say I'll never do that again (plus I left him in Feb 2010 so he's out of the picture). Anyway the debt was in my name so now I'm dealing with it. Fortunately I bought a house before I met him so I've got that and plenty of equity to cover my debts if I sold.

I started with £73k of debt :eek: but after paying some off and inheritance money I'm now at about £50k. Scary but at least it's not getting any worse and I've budgeted so I know I can manage payments.

My problem is I've got loans paying things off but I have a credit card debt of £9700 that I'm only making minimum payments on. Now I'd like to get it into a loan so that in 5 years (or whatever) it's paid off in full. I can afford the repayments, so I applied for one at Sainsburys but it was declined.

So the question is: should I apply elsewhere or is the best bet to go into my bank and see if they will get me a loan (got a Barclaycard and Barclays account)?

It's doing my head in that it's the only debt that's not reducing and I can't seem to do anything about it grrr!

Thanks
Andie759

Tixy

Hi Andie and welcome and well done on starting to tackle your debts.

Obviously we only have limited information on your finances from your post but I expect you might struggle to get a loan if you already have £50k of debt. Whilst you want to use the loan to pay off a card you have any new lender will look at the amount of debt you already have and think you may struggle to service this extra debt (they don't know you will use it to pay off existing debt and cannot make you, so they take the worst case scenario that you actually spend the new money and end up in £60k debt).

What APR is this credit card on? is it your only debt that isn't a loan?

Is there anyway you can reduce other outgoings so that you can afford more than minimum payments to this debt? any loans finishing soon so you can then plough the extra towards the card debt?

Andie759

Hi tixy

thanks for the reply, I never thought about it that way - that they assume you will add to your debt, not transfer it.

A couple of my loans finish in a few months so will hang on until then and then put those monthly payments into paying off the CC.

Thanks again
Andie