40K loan required best option?

Giddytimes

Emmzi wrote: »

look, Mr Stubborn.

If you put 40k at say 22% (reasonable credit card rate) into the snowball calculator is says it will be paid off in 51 months at £850 a month (your 650 + the 200 spare)

I don't come up with this result? I think he'd have to be paying more like 4% interest to be able to clear 40k in 51 months at 850 a month.

What APR are Ocean offering you on the loan op?

talana

If you consistently have more coming in than going out you presumably have a large positive current account balance?

Or it's being splurged on luxuries that even the OP hasn't bothered to account for.

A loan isn't the answer here and the bottom line anyway is you're not going to get one for the amount you want.

Your income is £5000-6000 per month for goodness sake!! You pay £650 per month towards your debts....and the rest?? where's that going?
I just refuse to believe you can't free up some more of that income to pay off the debts double quick. Do without some luxuries, adjust your lifestyle...

With that sort of salary you absolutely shouldn't be in debt in the first place. Get over to the debt-free wannabe board, go through the guide to putting together a statement of affairs and take your head out of the sand.

Emmzi

tell a lie. I was working on a 5% minimum monthly repayment which is a LOT more than £650 a month!


These sums aren't adding up to me, Even 3% of £40K is more than OP is paying at the moment!


If it's actually £28k, he could be clear of that in 50 months. But he wouldn't get the new car he's probably after.

tell_it_how_it_is

Pretty much as Talana says, if you are completely serious about wanting to get out of debt you would surely be able to budget for and put somewhere in the region of half your £5-£6k monthly income towards paying them off.

You don't need a loan, you just need discipline.

rdwarr

I'm seeing large income and large debts which is a good example of "borrowing what we can afford to repay" but not a good philosophy for getting out of debt. Getting the £40k loan may be dangerous - what if you don;t alter your lifestyle and start pushing up the cards again?
I used to earn around 8k per month and splashed cash around all over the place on stuff I didn't need. I'm now on about £3k which is quite enough to get by on and feel a lot happier for it. I just stopped spending for a bit until I found my "level".

Experian_company_representative

On the credit scoring question: when you ask a lender for credit it will calculate a score for you based on your credit report, the information on your application form and any other info they already have about you. The points they award through their scoring are based on how their past customers have behaved. The credit reference agencies can give you, alongside your credit report data, a score to give you an idea of how a typical lender is likely to rate your report. The agencies do work with lenders to help them build their scoring models, so they have a good idea of what lenders are looking for. As a result, these scores are relevant to your chances of getting credit in the future but they are only a guide for you about some of the information a lender will assess.

If you go for the option of repaying your card debts as quickly as you can, make sure you concentrate on paying off the most expensive debts first.

James Jones

geoffky

you are about to run out of options...The sooner you realise what you have to do to get out of the mess you are in the better.....getting a loan is not your answer.

broad-sword_2

Is the income quoted net of expenses incurred to do the job? If it aint then and that's the 'take home', simple as I am, based on what info the OP has provided I agree with previous responses, this debt should be reduced on a monthly basis if not quicker.

somethingcorporate

You need to address the reasons you have enormous amounts of debt. Consolidating rarely solves the issue as then you have an unused £30k limit on the cards waiting to be spent again.

Deal with your reasons for you continual overspend. Cut your outgoings and tackle the highest interest debt first.