Yes or No to debt consolidation for credit cards

maginot

Post up a SOA (statement of affairs) this will show your ability to meet debt repayment.

As has been mentioned if you've just finished paying a £15k loan, you must now have extra cash. Start throwing this and any other spare cash at your second credit card, this will then disappear and you will have even more extra cash to throw at the second most expensive debt.

Although debt consolidation isn't necessary a bad thing, I don't think it would be recommended for you situation. Credit card 1 and overdraft are not too bad interest rates and a loan could well be more expensive. Also from the sound of your post when ever you need anything e.g. Car, white goods, boiler etc you will just put this straight on the card again instead of having an emergency fund for items such as this. You will then find you have a £12k loan again as well as the credit cards maxed.

Best of luck!

redpete

IndebtUK wrote: »

Regarding my perception of people in debt, I do stand to be corrected and don't mean to insult anyone with good financial intelligence.

Insulting other people is not really the problem but the unrealistic view of your own situation might be. Thinking that you are in the same situation as everyone else means that you can blame all sorts of external influences and not take responsibility yourself, as does saying you're in a scientific job and therefore cannot be expected to understand finances, also thinking you are living within your means whilst frequently and regularly relying on the overdraft and not being able to clear credit card balances.

I certainly wouldn't recommend saving the money you now have 'spare' after paying off the loan when you have outstanding CC balances attracting large % interest.

IndebtUK

Thank you everyone sincerely for taking the time to give your perspective on this issue. Some times it is not so easy to talk to friends or family about these financial issues as they will wonder and judge you straight away - "What the hell did you buy? How did you get yourself into this situation in the first place!" I am sure you can image and understand my position.