Need advice about recrediting loan

Tifa_Lockhart

Hi everyone, was thinking you might have some good advice for me. Lloyds TSB called me in yesterday to talk about some options for my account. These are a run down of my debts;

• 2 loanswith them, about £6,000 to pay them off in full - I have been paying £400 a month for a long time.
• £5,000 overdraft with me unable to make any payments to get rid.
• Lloyds TSB credit card maxed at about £1,900.
• Barclay card at around £1,800

That is payments out per month of £570 on bank stuff. With rent and bills I pay out per month £1,260 and earn £1,590 a month. Leaving me with about 300 for food, clothes, travel a month. I'm not managing and Lloyds offered me a £15,000 loan with payments per month of £406 over 48 months at an APR of 14.4 (total to pay 19,500). Thats a lot isn't it? Why am I being ripped off? Is there something else I should do?
Sorry this is long winded

DCFC79

Yes try cutting down your bills, get rid of any non essential stuff, maybe post a SOA on teh debt free wannabee board, your spending above your means but why ?

Can you not car share with a colleague. Sell some stuff maybe.

CLAPTON

what are your current APRs?

why do you say it's a rip off; it seems an excellent deal for some-one in your circumstances

how you really need to make sure you review your spending and don't trun up the CC or OD again

Tixy

£300 for food, clothes and travel doesn't sound to bad at first viewing - assuming its for 1 person.
Before you take the loan I;d agree with working out a statement of affairs (SoA) to see where your money is going each month and how far short you are of being able to make repayments.
If you post the statement of affairs you might find people can advise you better if they can see more about your financial position and should be able to make suggestions how to reduce your outgoings to increase your debt repayments.

Then you need to consider what your APRs are on your current debts. But most people on these boards urge caution with consolidation loans - as many people take on out and the run up extra debts on the cleared cards or overdrafts again, leaving them in a much worse position.