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Loan and CC into one longer loan?
Long story short, I suck at money. My partner and I got a small personal loan to pay off our CCs last year, and guess wot, he managed fine but I didn't. Been crying myself to sleep over the last few months worrying about what to do and I've been sent to see a counsellor for depression.
The basics are (I can't log into my bank account from work so I don't have exact figures):
Loan amount left to repay: £2,700-odd at 20.4%. Fixed repayment of £175 per month.
CC balance: £4,300-odd at 17.9%. Payment of £150 per month.
To keep it simple, I can't afford to pay both. I rang my bank and they offered to basically give me a new loan (the lady called it a consolidation loan, but it's not a secured one) of £7,200 at 17.9% for 5 years, and would pay off the current loan and my CC so I wouldn't pay two lots of interest. I'd then close the CC account.
That would give me a single monthly payment of £175 per month, as now but would give me £150 extra, which is sorely needed for month-to-month living!!
The loan we took out before was a MASSIVE mistake, I don't need anybody else telling me that. If it wasn't for that loan I'd be paying my credit card off like normal like everyone else, but I'm locked in with these fixed payments and I can't afford both.
Has anyone else been offered a deal like this? Is it a good idea?
The basics are (I can't log into my bank account from work so I don't have exact figures):
Loan amount left to repay: £2,700-odd at 20.4%. Fixed repayment of £175 per month.
CC balance: £4,300-odd at 17.9%. Payment of £150 per month.
To keep it simple, I can't afford to pay both. I rang my bank and they offered to basically give me a new loan (the lady called it a consolidation loan, but it's not a secured one) of £7,200 at 17.9% for 5 years, and would pay off the current loan and my CC so I wouldn't pay two lots of interest. I'd then close the CC account.
That would give me a single monthly payment of £175 per month, as now but would give me £150 extra, which is sorely needed for month-to-month living!!
The loan we took out before was a MASSIVE mistake, I don't need anybody else telling me that. If it wasn't for that loan I'd be paying my credit card off like normal like everyone else, but I'm locked in with these fixed payments and I can't afford both.
Has anyone else been offered a deal like this? Is it a good idea?
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