loan providers

follington21

Hi,

I am looking to consolidate my debts into one loan. I have £9,375 of outstanding debt (not including bank overdraft) over two loans and 3 credit cards. I pay £350 a month on these. (Providers - Cahoot, Citi for loans and Halifax, Egg, Cap 1 for credit cards). I have a less than average credit history although comes out as fair on experian credit score and needs improvement on equifax.

I also have a seperate loan for £16k which my parents got for me through barclays and £2.5k on HSBC credit card but am not looking to include these as 1. Barclays is through parents at 6.6%APR and HSBC is an interest free balance transfer that runs until end 2007. I really need to reduce my monthly outgoing as will moving into rented accomodation soon (currently living with parents) and as I'm paying minimum on credit cards I really want to get rid of these.

Apart from Citi and Blackhorse is there any other loan provider that would consider lending me this money, I know thist might be unlikely as they would consider it as lending me more money on top of my existing debt rather than consolidation??

Regards,
Mark

DavidHM

So essentially you have £27k of debt and you want to take on more commitments by moving out of home and paying rent?

I'm not saying you should never do this (e.g., if moving closer to a better job) but realistically, you ought to get yourself over to the debt-free wannabe board and see if you could clear this debt by adjusting your spending habits and paying down your credit cards aggressively rather than by paying even more interest (sub-prime?) over a longer period of time.

follington21

I have no choice but to move out as at the moment i commute by train which takes over 2 hours each day and it is just not workable with the job I do. With the lack of commuting I will obviously save around £300 per month and thus this can be ofset against rental costs.

I dont want to get into further debt I want to consolodate the debt I have on credit card and the two loans (keep barclays as low apr and hsbc as interest free!) into one loan and not necessarily over a longer period of time. The two loans end in 4 years and the credit cards would take a lot longer if I continue to pay the minimum amount each time - so wouldnt it be better to get a loan to cover all of these? I cannot afford to pay much more than I do, my lifestyle is very minimal and my monthly outgoings are as follows:

Mum dad loan £381.88
Cahoot £101.38
Citi £118.18
Credit cards (min amount - non HSBC) - £130
HSBC credit card - £125
Bank overdraft - £40

TOTAL - £896.44

Other living costs
Food - £120
Train fare - £300
General Expenses - £200
Phone / Internet - £50

Overall TOTAL - £1,566.44

Earnings after tax - £1835

The extra amount is being used to save for a renting deposit.

Its a matter of weighing up cash flow against debt and if I got one loan say over 4 years I thnk this would actually work out cheaper in terms of cost per month (high APR's on credit cards etc) than the current situation - thus asking are there any lona providers for adverse credit other than Citi and black horse - are the providers / brokers on the provider A-Z page actually usefull in any way?

DavidHM

Without wanting to exclude the possibilty of getting another loan, who says you have to pay only the minimum on credit cards? You can pay any amount more than the minimum. But get yourself over to the debt-free wannabe for more complete advice.