Loan Advice

WISEYC

fadetogrey wrote: »

you are correct but im wondering why the OP is going to apply for her?

Id only be filling in the form whilst she sat beside me shes useless on computer lol

jonesMUFCforever

If she does not have a salary (I take it maternity pay is a lot less than normal salary) then nobody will lend to her for reasons detailed above in other posts.

However she can pay back the most expensive card with the most money every month that she can afford (min payments on rest) until it is repaid - this is called snowballing - more information and advice can be got on the debt free wanabe board.

She already has debt getting a loan does not reduce it at all.

Stuart_W

As jonesMUFCforever says, repay as much as can be afforded each month.

Based on a typical 19.9% APR...
£5,000 credit card debt using repayment of greater of 2.25% of balance or £5 can take 32 years to repay - starting with £112.50 this month
£5,000 credit card debt repaying £125 monthly fixed will take 5 years and 3 months to repay in full
£5,000 credit card debt repaying £150 monthly fixed will take under 4 years to repay in full.
£5,000 credit card debt repaying £200 monthly fixed will take just 2 years and 8 months to repay in full.

It might sound trite, but pay back as much as possible as quickly as possible - starting with whichever card has the highest interest rate. It will make the biggest difference.

A "consolidation loan" is very often a false saviour.

chesky369

Your girlfriend would be better off contacting one of the agencies who assist people with their debt problems - CCCS or CAB. They could help her set up a repayment plan which if the credit card companies agreed, might result in them freezing the interest which is always the bugbear with trying to pay them off.