I Need your advice

ang_babe

Hi i need your help and advice. sorry it is so long but please take the time to help.

I have just re-morgaged the house and have got £17,000. I have got a loan with halifax re pament figure is £17,189. Payments are £300 per month 76 payments to go and interest rate of 10.14% I also have £14,000 in three Credit cards, interest for these are aprox 29% and 16%. What should i pay off????

I recently had fraud on my credit card and was canceled and a new account given to me, also i changed my current Account to a better one. I have tryed to get a new loan at a better interest rate, but was refused - high risk with all my debt, and have had a lot of credit checks done recently ( remorgage, new Current a/c, new credit card and loan.)

Should I .....
1) pay off the loan, and keep the credit cards ( being high risk will i get a 0% deal on a new credit card transfer.0

2) pay off the Credit cards and try to get a better deal on a loan.( will i get one)

These are the only things i can think of, can you help, do you have a better idea, that i cannot see. Your help will be appriciated... Ang

moozie_2

Hi there

Have a play with the snowball calculator on https://www.whatsthecost.com, I am sure you will find it helpful.

As a rule, higher APRs should be paid off first.

Hope your re-mortgage was a good deal.

CLAPTON

i would pay of the higher APR debts first..i.e. the credit cards.
save the balance of the 17,000 and the money you are currently paying each month on the credit cards in the best savings a/c you can find.

wait a few months for your credit file to show your new debt situation and for the number of seaches to drop off, then look around either for a LOB cc or a lower APR loan.

of course whatever you do dont spend on the CC again without paying off in full each month (set up a DD to pay the full amoiunt to avoid temptation)

LookingAhead

I agree with Clapton completely.

bank_of_slate

Hi Ange,
Welcome to the debt free wannabe family.
On here you will get loads of support and importantly, NOT BE JUDGED!

I agree with clearing the highest APRs first, If you are a high risk you may get 0% balance tranfers on other cards but only for very small amounts!

I urge you to post a full SOA (statement of accounts) which means total household income and total outgoings including everything, no matter how small, we are experts at helping you to make savings in this area, gas, electric, insurance, phone etc.
This may take a bit of working out, sit down with a cuppa and all your statements to write this out, scary thought I know, but it's amazing how much better you feel once you face the absolute truth in black and white!
Finally do you have full support form a loved one/partner?
Keep posting on this thread for advice and support
...Linda xx

taxi73

Hi there I totally agree with Clapton

lynzpower

when you say you have 17k from remortgaging do you mean you have got a) a secured loan b) a extension of your mortgage c) something else

gallygirl

Have you checked about possible charges for repaying loan early???? Can you make regular / one-off payments?

I'd advise you:
1. Cut up the credit cards!!!!!! There is a v big danger you will end up 'just getting this' and 'just this once' and before you know it you'll be in even worse doo-doo!!!!
2. Pay off the credit cards.
3. Use the money saved from your monthly payments on the credit card (less additional mortgage payments) to make additional payments on your loan. If it is not fully flexible then save the extra each month until you have enough to pay it off.
4. DO NOT APPLY FOR ANOTHER CREDIT CARD until you can honestly say it will be used either to a) pay off loan or b) kept for emergencies only (no, new shoes are NOT an emergency ).

Everyone reading your post will be feeling a bit uncomfortable about the fact you have remortgaged to clear debt. It seems a good idea, however do you realise that over 25 yrs that 17k will actually cost you 32k???????? Although you have a much lower interest rate the length of time means the interest piles up.

Also, as I've said above, there is a really big danger that this has been an easy way out - if you haven't had your lightbulb moment you WILL end up in a worse position, as plenty on here will testify!!!!

Be careful.