Loan to Consolidate Debts

xgingerx

Hi quite new to this forum, hope someone can give me some advice
I have approx 22,000 debt

Loans x 2 = 15,000 (Cahoot 9,000 14.9% and Cit 6,000 27%
Credit Cards / Store Cards = 7000 (7 cards)

I earn 26500 a year but am paying out on the above 750 pounds a month!!

I do have a car to show for some of this but most is living beyond my means which I now dont do and trying to clear some of this debt.

I would like to consolidate some of the above so that I can bring the monthly payment down.

I am unsure how to go about it and where to start.

I have a spotless credit record, no late payments or adverse credit.

I bank with Nationwide and wonder if it is best to go in to a branch and explain the situation face to face rather than on line. I only want to borrow to replace exisitng debt not to add to it.

I also am thinking should I only get a loan to clear the higher apr's and snowball the rest of the debts
Honestly I dont know where to start !!!

Also note I am not a homeowner.

Appreciate any views or advice on this

Thanks

BONJOEY

i would go in to the bank andlike you say explain, they might beable to offer you a full loan to cover all you owe, its worth a try with your bank first xx

chani1

hi there, if you have a good credit rating there is no way you should be paying those interest rates, Shop around for quotes without going through an application(too many credit checks in a short space of time can harm your credit) when you find one with good rate and check for things like no early settlement fee and take it without ppi you can easily half your monthly outgoings. Take one out to cover total debt as if you just pay off the higher ones your still going to have the others incurring interest its better to pay just one monthly amount and be one the road to being debt free.

xgingerx

Hi, the problem i had is that i was working abroad for 6 years so had not credit file apart from 1 ccj which was set aside and stayed as it was my ex wifes. Anyway when i took out the citi loan my rating would have been quite poor but now have over years of spotless history on all my accounts.
Thanks for you advice and I ll let u know what happens, i got 2 searches to come off in april so will wait till they are cleared and then go to my bank as they are offering fixed apr

firesidemaid

IMHO, i would also go and speak to your own bank and ask them if you can consolidate. I think nationwide should have a 6.9% loan rate at the moment.

on your salary, you should be able to get near/that kind of amount.

if not, then try and get some of the c/cards moved to 0% or low balance transfer rate deals (eg. m+s).

good luck;)

tom188

2 things

1. You may find it difficult to get any more credit as your net debt is currently near on your annual salary. As said above go and talk to your bank.

2. Consolidating debt can be very dangerous, firstly because you often end up paying more interest, but secondly because people will often find themselves in the same position 2 years down the line with, but with the loan on top. If you go down this route you must resolve to cut up your credit cards and not apply for any more credit until your debt is clear, or at least under control.

xgingerx

Thankyou, I hope the bank will help me out with this, as said never miss a payment but really want to reduce my monthly outgoings and understand I would have to shred the current cards to avoid any further debt

I think this is why I am a bit worried about getting the loan as I so already have a large debt but I would be asking to consolidate not add to the debt, but just hope they see it that way?

Thks again