Credit card debt

Sidney56

I have 5 credit cards with a balance of around £20K I want to get rid of this if I go to my Building Society and look for a loan to consolidate this into one payment is this the best way forward?

Tixy

Depends - on the APRs on the cards, how much you can afford to repay a month, how much you earn (and therefore how likely you will be to get accepted for a large unsecured loan), and if you can get a loan what APR that would be at.

You may struggle to get a consolidation loan depending on the rest of your financial position - but as a general rule a potential lender will look at the loan as additional debt on top of your current cards and will then work out whether you can afford to service £40k of debt (as they cannot be sure you will use the money to consolidate/not reuse the cards).

People might be able to advise better if you posted the cards you have, the balances, limits, APRs, minimum payments etc and how much you can afford to pay off each month.

dresdendave

Sidney56 wrote: »

I have 5 credit cards with a balance of around £20K I want to get rid of this if I go to my Building Society and look for a loan to consolidate this into one payment is this the best way forward?

A better approach would be to analyse your lifestyle and work out how you have managed to spend £20,000 of someone else's money. Until you address your overspending anything else is just burying your head in the sand.