Debt management needed

mocktudorland

Hi MSE
Sorry for the quiet lull in correspondance.
Have been cutting down on extra expenses (an major food bill).
I tried to get 0% interest rate card - but it looks like my credit is pretty much maxed out!

So meanwhile I have been researching & negotiating for a much lower interest loan rate.
A loan from Tesco of 8.3% would pay off all my credit card bills. It has no penalty for extra repayments and only a minimal (1 month penalty) for early repayment of the complete loan.
I'd be £150 better off compared to the amount I pay for interest and bank overdraft cost. Also -On top of that I'd be repaying the loan AND I'd be able to pay off the complete loan in 7 years.
Steve

RAS

Do not take out a consolidation loan.

You need to start by plugging into the snowball on www,whatsthecost.com you existign debt and work out how lng it will take to cleart and at what cost interest wise.

it will probably frighten you witless.

Then plug in the cost of the loan.

Oh and 85% or people who take out loans end up with the loan and yet more credit card debt.

rising_from_the_ashes

Hi Steve, glad to hear you're getting things sorted.

Re the consolidation loan - I absolutely 100% agree with RAS - it rarely works.... much better to make the cuts as suggested and hit the debt you've got with as much overpaying as you can.