Best loan deals with cashback/gift?

livewire_82

Following on from around 18 months on/off out of work after redundancy (I'm now back on my feet with a new job) I have debts of around £8,000 and I'm looking to consolidate all of it into one managable monthly payment (over 3 years).
I've seen Martins article regarding the best deals:
but I just wanted to see to make sure that I didn't miss out on any possible deals that may offer a little more (i.e. cashback or a free gift). Obviously my priority is low APR% but if there are any other deals apart from the standard ones you find on money comparison websites, it would be good to know.
For the record, on an £8,000 loan the best I've found so far is Sainsburys which is as follows:
• APR: 6.8%
• Total interest charge: £840
• Monthly repayment: £245

paddyrg

Research is great, but do be aware the rate you get offered will depend entirely on each lender's scoring process. £8k in debt means borrowing to clear that debt means you'll need to be stable in a £24k+ job to be even considered. Forget 'free' gifts, you pay for them.

opinions4u

Forget "incentives" to borrow.

Not worth getting excited about. Focus on rate, affordability of payment and not building up new debts.

Sainsbury offering double Nectar points should be enough to keep you happy.

iolanthe07

Sainsbury's may offer 6.8% but be aware that this is a headline rate and they are only obliged to accept 51% of applicants at this rate. Lots of people come on here disappointed that the actual rate they are asked to pay is a good deal higher.

Clive_Woody

paddyrg wrote: »

Research is great, but do be aware the rate you get offered will depend entirely on each lender's scoring process. £8k in debt means borrowing to clear that debt means you'll need to be stable in a £24k+ job to be even considered. Forget 'free' gifts, you pay for them.

If the OP is £8k in debt and wants to borrow an additional £8k to consoluidate this then the lender would see this as debt of £16k and using the rough 50% rule the OP would need to be earning INXS of £32K.

paddyrg

Clive_Woody wrote: »

If the OP is £8k in debt and wants to borrow an additional £8k to consoluidate this then the lender would see this as debt of £16k and using the rough 50% rule the OP would need to be earning INXS of £32K.

Heh heh, you're better at sums than me (at least when I was typing...) - that's what I meant ;-)

livewire_82

Clive_Woody wrote: »

If the OP is £8k in debt and wants to borrow an additional £8k to consoluidate this then the lender would see this as debt of £16k and using the rough 50% rule the OP would need to be earning INXS of £32K.

What are you talking about?? I have £8k of debt and I want to group all of that together into one sole debt so that it is more managable - that's what consolidation is! I'm not quite sure how you've worked out that by me moving my debt, I would in turn double it. I think you've misunderstood. The only additional costs I would incur is the interest on top of the loan which shouldn't be more than £800.

YorkshireBoy

livewire_82 wrote: »

What are you talking about?? I have £8k of debt and I want to group all of that together into one sole debt so that it is more managable - that's what consolidation is! I'm not quite sure how you've worked out that by me moving my debt, I would in turn double it. I think you've misunderstood. The only additional costs I would incur is the interest on top of the loan which shouldn't be more than £800.

The loan provider has no guarantee that you'll use the £8K to settle the other £8K of debts you have, or indeed that you'll not run them up again, meaning you'll not be able to afford the repayments on the loan!

This means they'll take into account your £8K existing debt and any available credit you have (in the form of unused credit card and overdraft limits) when deciding a) whether to accept you, and b) what rate to set.

Do you understand now?

koloko

deleted deleted deleted

Clive_Woody

YorkshireBoy wrote: »

The loan provider has no guarantee that you'll use the £8K to settle the other £8K of debts you have, or indeed that you'll not run them up again, meaning you'll not be able to afford the repayments on the loan!

This means they'll take into account your £8K existing debt and any available credit you have (in the form of unused credit card and overdraft limits) when deciding a) whether to accept you, and b) what rate to set.

Do you understand now?

Thanks, saved me typing that out.

geoffky

Some people just do not get it do they? I imagine not one of them thinks it as 16k of debt.
This is why the bankers are running rings round the economicaly challenged, until people are taught from a young age all about money and debt it will continue.