Bit Of A Dilemma :o(

JH1985_2

Hi,

I have a bit of a dilemma I currently have 2 credit cards and 1 loan.

The loan is 6.7% with Nationwide ---£ 5500 (ish) [need to get a settlement figure today]
Virgin credit card is currently 0% for the next 9 months ---£3504.15
but my MBNA credit card has run out of 0% now risen to 15.9%----£2445.80

I cant seem to find another credit card that is going to offer me enough to transfer the balance over.

My bank (barclays) have pre-approved a loan for £12,000 at 6.3% over 4 years (which is alot more affordable for me each month).

Do you think it is worth me transfering everything over to the 1 loan and just having one bill a month.

Really sorry if i'm being dim and silly! Dont know how i've managed to get myself in this pickle again. Feel really down

poppy_f1

how long do you have on the nationwide loan? cos in the long run you might pay out more interest
i'd leave the virgin card as it is since its 0%

JH1985_2

I think I may have another 2 years on it im not sure...

lynzpower

Hi JH

It seems your pickle is the consolidation trap. Get debt, put into a loan, then run up the cards again, and so on , until no one will give you any more debt.

I dont think a loan is the best idea- it didnt work last time did it, and you have to be really reallly disciplined ( I wasnt either- and ended up in the same place oyu have )

could you do a SOA, all your income, outgoings and debts ( inc overdrafts, money you ow mates etc)

Southern scousers sticky will tell you all you need to know about how to do one

oncce this is done we can have a look over your situation and see if we can free up any spare money, from cutbacks.

girlsmum

have you looked at low interest for the life of balance cards..
they are at a better rate than the loan, just try and get the MBNA transferred to it for now if they wont give you more credit

JH1985_2

Thanks for the quick reply guys.

Ok so
INCOME
£1089

OUTGOINGS
£297 Nationwide Loan
£80 Virgin Credit Card
£30 MBNA Credit Card
£31 Car Insurance
£40 Mobile (cant cancel until May)
£400 Rent (Moving out in Feb so this is going to go up, currently only doing a flat share and hate it, me and friend are going to rent a property together, so bills on top- hopefully wont work out much more than what im paying now.)
£50 Shopping
£20 Petrol

Doesnt really leave me with me much each month.

lynzpower

£297 Nationwide Loan
£80 Virgin Credit Card
£30 MBNA Credit Card
£31 Car Insurance
£40 Mobile (cant cancel until May) ( no but you are allowed to downgrade your package, just call them and get a smaller one )
£400 Rent (Moving out in Feb so this is going to go up, currently only doing a flat share and hate it, me and friend are going to rent a property together, so bills on top- hopefully wont work out much more than what im paying now.)
£50 Shopping ( are you sure, if so brilliant going :T)
£20 Petrol

I make it you should have 200.01 a month left over. Do you actually have this.

Id look at martins budget planner and start a spending diary TODAY to see where every penny goes.

CLAPTON

what are you trying to achieve...paying off the debt as quickly as possible or trying to reduce you monthly payments even if the debt stays longer?

you need to post full figures to really make any comments like

how much do you pay on the loan and how many payments left,
settlement figure,
minimum monthly payments on the CC,
how much can you afford to pay per month in total?


also your debts add to 11,449 so if you do refinance then only borrow 11,500 and dont increase your debt by borrowing 12,000

have you stopped spending on the credit cards

and
a. its unlikely that refinancing the loan will make sense
b. obviously refinancing a 0% deal at 6.3% is bad news
c. but refinancing 15.9% at a lower rate seems good news.... best to concentrate on this problem...can you get a lower LOB card for this or even simply pay as much as possible at this card.

JH1985_2

Im not actually sure what im trying to acheive.. :embarasse

I have stopped spending on the credit cards and they have been cut up. Havent used them in a few months now.

I'm going to call all lenders in my lunch break and get full figures.

Thanks for your help, I will get back to you with amounts at lunch.

lynzpower

put it this way JH I had the choice of

a) paying off my debt asap in which case Ill be 400 a month better off sooner rather than later
b) reducing my payments so I have slighlty more money to squander every month, but being in debt and say 370 a month worse off for a longer amount of time.

It was a no brainer for me

JAMIEDODGER

i agree with lynz. dont take the loan, try and live cheaper, snowball like mad and you will come out of it debtfree and conscious about spending in future.