Should i get a 7.5% loan?

koshiuk

Hi, im not that great with money so asking what anyone thinks. I worked out im paying around £370 a month, paying of a flexi loan at 18% and some credit cards some of which are on 0%

In my wisdom im thinking it might be a good idea to bring monthly cost down and get a £7000 loan at 7.5% which is £255 for 30months. As i keep dipping into the flexi loan so it hardly goes down..... or should i do another balance transfer at 0% and dont clear the existing loan? info below... cheers.

monthly payments:
loan £115 18%
card £50 0%
card £20 £18
card £40 18%
card £110 0%

debt total:
overdraft £1000
loan 2500 18%
card 1200 0% 6months left
card £150 18%
card £3700 18%
card £4400 0% 1yr left

HappyMJ

Why are you only making the minimum repayments? You have £13,000 of debt currently if you get another £7,000 loan I fear that you'll just run up the balance in the flexi loan back to where it was. Especially since you start your post by saying "im not that great with money". You need to clear the 18% cards as fast as possible so it requires some big saving on your part. A loan will not fix it.

koshiuk

thanks for the reply.... only making min payment as cant really afford much else at the moment, its a !!!!!!... so been moving the debt onto 0% cards and have the flexi loan. i wouldnt reuse the flexi loan once paid, as the payment were quite high..

CH27

How much do you earn?
You have a high level of debt & are only paying minimums. That won't look good to lenders.

koshiuk

on 27k.... most of it taken up, car fuel / rent + bills / child costs etc

rent and bills will cost half they do in around 4months

CH27

No way will you get a loan.

Your debt level with be almost equal to your yearly salary.

koshiuk

sounds like i wont get a loan, didnt think a potential lender would know that im paying minimum amount on cards, would this affect my credit rating then as it is v good at the mo (or it was)? bal trans 0% credit card it is then i guess...

koshiuk

CH27 wrote: »

No way will you get a loan.

Your debt level with be almost equal to your yearly salary.

debt level is £13k - wages are maxed each month with general living costs, unless ive missed something?

drbesty

If you owe £13k and take another £7k you'll owe £20k, which is roughly what you earn after tax, so you'd owe your entire annual salary

CH27

koshiuk wrote: »

debt level is £13k - wages are maxed each month with general living costs, unless ive missed something?

So how are you going to pay back more debt?

CAN1976

drbesty wrote: »

If you owe £13k and take another £7k you'll owe £20k, which is roughly what you earn after tax, so you'd owe your entire annual salary

Is it not a consolidation loan to get the higher percentage debt on to a lower percentage? If so overall debt would remain at 13k wouldn't it?